why did tobin describe the demand for money as 'behaviour towards risk'?

tobin j, economist 1962

2007-03-21 10:27:29 · 1 answers · asked by slim p 2 in Social Science ➔ Economics

1 answers

Basically the use of money is a risk instrument.

The demand for money is a way to increase risk, especially when using leverage.

So, the more risk you take on, the more chance you have to make more money.

2007-03-21 10:46:12 · answer #1 · answered by Santa Barbara 7 · 0⤊ 0⤋

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