In Japan, as the population started ageing, expectations of future capital gains started to erode, as conservatism set in (a rise in liquidity preference
that occurs every time there is a recession).
Any "liquidity preference
" among the holders of wealth--"hoarding," a recurring term in The General Theory--means grim things for the economy.
This of course masked what he actually contributed, which was mainly the long-run underemployment equilibrium (i.e., the thesis that involuntary unemployment could exist in a market economy even with flexible wage rates) and his interest-determining theory of liquidity preference
and the liquidity trap.
"The same method is used of skirting problems by means of artificial definitions which, tied up with highly specialized assumptions, produce paradoxical-looking tautologies." He said that Keynes' central assumptions, "marginal propensity to consume," "liquidity preference
," and "marginal efficiency of capital" would inevitably lead to the assumption of long-term unemployment.
Kocherlakota (2003) shows this for a one-time, unexpected liquidity preference
Keynes developed the liquidity preference
theory of the interest rate.
The first chapter consists of brief background on issues related to oligopoly, liquidity preference
, stochastic equilibrium models, domestic benchmark rate, financial programming, the compensation principle, monetary transmission, exchange rate stability, endogenous money, and non-contestability.
Circulating notes and coins amounted to 8,531 MTD, posting a stability compared to the previous year, reflecting a decline in the behaviour of "liquidity preference
" among economic agents noted since the Revolution.
For companies with a strong liquidity preference
, a lease can provide significant benefit in the preservation of working capital and cash flow management.
For King, the past decade reinforced the lessons Keynes drew from the 1930s: One is the psychological quirkiness of investors, which Keynes described as "animal spirits" on the upside and "extreme liquidity preference
" on the down.
"The popcorn isn't a whole lot better from a nutritional point of view than the soda is," board member Bruce Vladeck observed," and may have even more calories." Phillips likewise questioned the mayor's liquidity preference
. "We're really looking at restricting portion size," he said, "so the argument could be ...
I can only agree with Leijonhufvud (1968, p.176) that "the connection between Keynes' theory of saving (and consumption) and his Theory of Liquidity Preference
is a complicated affair..