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 Glossary   >   L   >   "Liquidity preference hypothesis" Definition   

        Liquidity preference hypothesis

The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.

Liquidity preference hypothesis


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Liquidity preference hypothesis - The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.


Liquidity preference hypothesis : the argument that greater liquidity is valuable, all else equal. also, the theory that the forward rate exceeds expected future interest rates.