liquidity preference

(redirected from Liquidity preference hypothesis)
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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 ?
According to the liquidity preference hypothesis advanced by Hicks (1946) the term premium is positive and increasing with maturity.
The liquidity preference hypothesis implies that the expected return on assets increases monotonically with remaining time to maturity.