Speculative demand


Speculative demand (for money)

The need for cash to take advantage of investment opportunities that may arise.

Speculative Demand for Money

In Keynesian economics, a need for money for investment purposes. That is, speculative demand for money is the desire to have money for transactions other than those necessary for living. Speculative demand includes risk capital for securities. According to John Maynard Keynes, speculative demand is one of the three desires governing demand for money, the others being precautionary demand and transactions demand.