ABSTRACT
Friedman starts off by seeing the demand for money as a demand for one kind of wealth. It is therefore determined by the individual’s wealth and the yields on other assets as well as the yield from money itself, i.e. the services derived from holding money. Wealth is a budget constraint and can be transformed by means of the identity W = Y r https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203786802/99906f7c-62ed-475c-8536-4991f5381a21/content/eqn13_94_1.tif"/> to include income in the analysis (W = wealth, Y = income, r = a general rate of rinterest determined by the yields on all assets).
