Money Demand Example: (M/P)=L(rs, rh, ze,w) Are portfolio theories useful for studying money D? Depends Narrow measures of M Broad measure of M---plausible M is a dominated asset (as a store of value, it exists alongside other assets that are always betterMoney Demand  Example:  Are portfolio theories useful for studying money D? Depends… Narrow measures of M --- Broad measure of M --- plausible M is a dominated asset (as a store of value, it exists alongside other assets that are always better) (M / P) L(r ,r , ,W ) e s b d = 