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The owners of wealth will then weigh the lack of liquidity of different capital equipments in the above sense as a medium in which to hold wealth against the best available actuarial estimate of their prospective yields after tory burch sale allowing for risk. The liquiditypremium, it will be observed, is partly similar to the riskpremium, but partly different; the difference corresponding to the difference between the best estimates we can make of probabilities and the confidence with which we make them. When we were dealing, in earlier chapters, with the estimation of prospective yield, we did not enter into detail as to how the estimation is made

As a footnote to the above, it may be worth emphasising what has been already stated above, namely, that liquidity and carryingcosts are both a matter of degree; and that it is only in having the former high relatively tory burch flip flops outlet to the latter that the peculiarity of money consists. Consider, for example, an economy in which there is no asset for which the liquiditypremium is always in excess of the carryingcosts; which is the best definition I can give of a socalled nonmonetary economy. There exists nothing, that is to say, but particular consumables and particular capital equipments more or less differentiated according to the character of the consumables which they can yield up, or assist to yield up, over a greater or a shorter period of time; all of which, unlike cash, deteriorate or involve expense

if they are kept in stock, to a value in excess of any liquiditypremium which may attach to them. In such an economy capital equipments will differ from one another a in the variety of the consumables in the production tory burch boots sale of which they are capable of assisting, b in the stability of value of their output in the sense in which the value of bread is more stable through time than the value of fashionable novelties, and c in the rapidity with which the wealth embodied in them can become liquid, in the sense of producing output, the proceeds of which can be reembodied if desired in quite a different form.