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

Plus, they want a senior liquidity preference of 1x to protect their downside since they feel the valuation is rich given the stage of the company.

From Forbes • May 18, 2015

That category is not closely related to the effective demand but to the speculative motive, particularly the state of the liquidity preference.

From Economist • Jul. 26, 2012

With liquidity preference theory it is easily understandable that there are times when a central bank can’t control M3.

From Economist • May 30, 2012