Definition of liquidity preference in English:

liquidity preference

Line breaks: li¦quid|ity pref¦er|ence


[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.

Get more from Oxford Dictionaries

Subscribe to remove adverts and access premium resources

Word of the day bimble
Pronunciation: ˈbɪmb(ə)l
walk or travel at a leisurely pace