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liquidity preference Line breaks: li¦quid|ity pref¦er|ence

Entry from British & World English dictionary

Definition of liquidity preference in English:


[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.
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