0 the fact of being available in the form of money, rather than investments or property, or of being able to be changed into money easily:
1 the fact of being able to be changed into cash easily:
the liquidity of assets/investments
2 the state of having enough money or assets to pay any money that is owed:
The business no longer has sufficient liquidity to meet its operational needs.
3 the ability to buy or sell easily on a market, for example a market in shares or bonds:
Business liquidity has risen.
If you invest in certain types of investments, liquidity will be poor.
Liquidity has been one of the biggest drawbacks to investing in Africa.
Households which are not liquidity constrained should exhibit the expected investment response to higher prices.
This point is demonstrated using an equilibrium business cycle model featuring heterogeneous households, endogenous labor supply and liquidity constraints.
That is, t gives the size of the aggregate liquidity shock in period t; higher realizations of t correspond to higher demand for liquid assets.
Any attempt to increase the safety of the means of payment was likely to constrain not only liquidity but credit creation as well.
This means that too low an inflation rate is unsustainable on a steadystate growth path with liquidity-constrained consumers.