... good i, is the price of good i in terms of an arbitrary numeraire. Obviously, in a barter economy, there cannot be a shortage of demand, which follows Say's law. However, if we want to represent these in a money market, we shall use this formula: , where and are the flow demand and supply of money. is planned additions to money holdings. If this follows Say's law, the total value of demand for goods and services equals the total value of supply under all conditions. In other words, is always zero. However, people have questioned quite a lot on Say's law. Firstly, people argue that in a money economy, if say's law works, demand should equals to supply, just like what we have said above, Dn should equals to Sn. However it is not possible due to the fact that people clearly do change their money holdings. In addition, people ...

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