Speculative Demand for money 2

Taken together, when interest rate is high, the high interest
payment foregone as well as a likely capital gain on bonds means
that demand for money (as a store of value) will be low. As
interest rate falls, the demand for money as an asset would increase.
Therefore according to Keynes, the demand for money as a store
of value is inversely related to interest rate. This is Keynes
speculative demand for money.

If current interest rate is higher than re, people would
rather hold all their extra money in bonds in the hope of making
capital gains when interest rate returns to the normal level. If
current interest rate is lower than re, people would prefer to hold
money in idle cash, so as to avoid capital losses when interest
rate returns to the normal level.