noun[mass noun] Economics
(In Keynesian theory) the preference of investors for holding liquid assets rather than securities or long-term interest-bearing investments: [as modifier]: liquidity-preference theory
More example sentences
- In effect, ‘the classical version is superior because it avoids the confusion between money and credit which Friedman correctly notes as plaguing the Keynesian monetary or liquidity preference theory of interest’.
- He began his career as a Keynesian economist at Cambridge, leaning to liquidity preference theory against Robertson's loanable funds theory in the Cambridge monetary controversies.
- What we now call real balances or liquidity preference was long appreciated and treated as hoarding.
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.