liquidity preference

American  

noun

1. (in Keynesian economics) the degree of individual preference for cash over less liquid assets.

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liquidity preference British  

noun

1. economics the desire to hold money rather than other assets, in Keynsian theory based on motives of transactions, precaution, and speculation

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Etymology

Origin of liquidity preference

First recorded in 1935–40

Example Sentences

Unfortunately, Levy’s magisterial volume is undermined by his tendency to characterize every major development in American capitalism as a change in “liquidity preference,” a Keynesian tic that will be distracting to the general reader and unconvincing to those who might understand it.

From Washington Post

Carter’s explications of macroeconomic theory are so seamlessly woven into his narrative that they’re almost imperceptible; you only notice how substantive they are once you get to his chapter on Keynes’s notoriously dense 1936 book, “The General Theory of Employment, Interest and Money,” and realize that you’re riveted by a passage on fluctuations in liquidity preference because you somehow know exactly what it is that Carter is talking about.

From New York Times

As part of the new investment, per the memo, SoundCloud’s new and existing investors will receive Series F stock, a special class of common stock that has seniority and preference, while existing Series E investors will have their liquidity preference cut by over 40 percent.

From The Verge

Should the investment deal, referred to as Project Sonic, close tomorrow, The Raine Group, Temasek, and all other existing investors would receive Series F stock, a special class of common stock that has seniority and preference, while existing Series E investors would have their liquidity preference cut by over 40 percent.

From The Verge

That is just another way of saying that interest rates depend on what economists call loanable funds and liquidity preference.

From Washington Post