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liquidity preference
noun
- (in Keynesian economics) the degree of individual preference for cash over less liquid assets.
liquidity preference
noun
- economics the desire to hold money rather than other assets, in Keynsian theory based on motives of transactions, precaution, and speculation
Word History and Origins
Origin of liquidity preference1
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.
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.
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.
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.
That is just another way of saying that interest rates depend on what economists call loanable funds and liquidity preference.
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