liquidity

UK /lɪkˈwɪdəti/ US /lɪkˈwɪdəti/
noun 4

Definitions

noun

1

The state or property of being liquid.

2

The degree of which something is in high supply and demand, making it easily convertible to cash.

3

An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.

Some stocks are traded so rarely that they lack liquidity.

4

Availability of cash over short term: ability to service short-term debt.

This is often phrased in terms of whether they are facing liquidity or solvency problems; but I think it’s better phrased in terms of the possibility of self-fulfilling crises, a la Obstfeld.

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