liquidity preference


Also found in: Financial, Wikipedia.
Related to liquidity preference: Market segmentation theory

liquidity preference

n
(Economics) economics the desire to hold money rather than other assets, in Keynsian theory based on motives of transactions, precaution, and speculation
References in periodicals archive ?
For companies with a strong liquidity preference, a lease can provide significant benefit in the preservation of working capital and cash flow management.
For Rallo the interest rate, or the structure of interest rates, is determined both by time preference and liquidity preference.
The first rejects Keynes' theories of liquidity preference, the second reinstates them while for the Circuitists the Central Bank's issue of 'high-powered money' is the critical mechanism in regulating liquidity (p76).
A sampling of topics: inflation and unemployment, liquidity preference as behavior towards risk, liquidity preference and the theory of interest and money, long-run implications of alternative fiscal policies and the burden of the national debt, investment under uncertainty, hours and employment variation in business cycle theory, and the inconsistency of optimal plans.
This is due to high liquidity preference of domestic banks, strong growth in UAH deposits and ongoing deleveraging of credit portfolios.
Given the liquidity preference for high-growth assets, any major market correction will be limited.
He researches the four key theories of money demand--The Quantity Theory of Money, Keynes's Liquidity Preference Theory, Friedman's Modern Quantity Theory of Money, and the Baumol-Tobin Model--and comes up with a list of questions applying the impacts of credit cards and debit cards to the results of the models.
By 1933 the basic elements of the big picture are in place - the short run output adjustment framework, the theory of liquidity preference, etc.
Mishkin |1992, 118~ not only embraces the liquidity-preference theory, but also argues incorrectly that in a model in which there are two kinds of assets, money and bonds, "the liquidity preference framework.
Since he intervened to rescue Bear Stearns in March, Paulson has been trying to pump cash into markets that are locking up because of investors' extreme liquidity preference.
They are the Quantity Theory of Money, Keynes's Liquidity Preference Theory, Friedman's Modern Quantity Theory of Money, and the Baumol-Tobin Model.