Liquidity preference hypothesis
The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates. ...
Liquidity preference curve
Definition: The liquidity preference curve is the demand for money curve.
Liquidity preference:
The inclination of individuals and corporations to keep their assets in varying degrees of liquidity. One argument is that greater liquidity allows better investment flexibility at times of market upheaval.
liquidity preference
(1) A desire among some holders of financial instruments to keep some or all of their funds in liquid instruments, that is, ...
Liquidity Preference Theory
The proposition that investors characteristically prefer liquidity in investments and consequently will generally only be induced to hold longer-term securities if higher returns are offered.
Liquidity preference theory
The Liquidity Preference Theory, also known as the Liquidity Premium Theory, is an offshoot of the Pure Expectations Theory.
Liquidity preference - The demand for holding assets in the form of money.
Liquidity ratio (Economics) -The proportion of a bank's total assets held in liquid form.
Liquidity ratio (Accounting) - Cash ratio.
[edit] Liquidity preference
Most investors prefer their money to be in cash than in less fungible investments. Cash is on hand to be spent immediately if the need arises, but some investments require time or effort to transfer into spendable form.
liquidity preference theory
in keynesian economics, the desire by investors to hold their money in liquid assets, such as checking accounts, rather than nonliquid assets (stocks, bonds, real estate).
Liquidity Preference Theory
Modern Portfolio Theory - MPT
Principal-Protected Notes
Ulcer Index - UI ...
1958. 'Liquidity Preference as Behavior Towards Risk.' Review of Economic Studies 25, no. 67: 124-131.
1965. 'On Improving the Economic Status of the Negro.' Daedalus 94, no. 4: 878-897.
Tobin, James (1958). Liquidity preference as behavior towards risk, The Review of Economic Studies, 25, 65-86.
Related Papers
Markowitz, Harry M. (1999). The early history of portfolio theory: 1600-1960, Financial Analysts Journal, 55 (4), 5-16.
The most important is liquidity preference, that investors need compensation for the potentially lower liquidity of long term bonds. Another explanation is that higher duration means greater exposures to interest rate risk and inflation risk.
securities and their maturity dates. Expectation of changes in interest rates
affects term structure, as do liquidity preferences and hedging pressure. A
yield curve is one representation in the term structure.
Liquidity preference [r]: A desire to hold money in preference to other financial assets that is attributable to the transactions motive, the speculative motive or the precautionary motive. [e] ...
 See also: Term structure, Hypothesis, Liquidity premium, Forward rate, Banks
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