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Speculative Motive

Economics Markets and Financial TheoryUpdated 05 Nov 2026

The speculative motive is one of three reasons, set out by John Maynard Keynes in his 1936 General Theory, why people and firms hold money instead of putting it into interest-bearing assets: to wait for a chance to buy assets more cheaply, for example when bond prices are expected to fall. The three motives together make up the demand for money in liquidity preference theory, which is explained in full on that page.

The other two motives are the transactions motive, precautionary motive. The idea is central to Keynesian economics.

Last updated 05 Nov 2026