Musings on Liquidity
Andria van der Merwe
Abstract
Andria van der Merwe
Abstract
Liquidity is important and necessary. Liquidity is an assumed characteristic of a well-functioning market, but we only pay attention to it when it is absent—like the proverbial umbrella that is missing when it rains. 1 What is market liquidity? Can we measure market liquidity? Can we manage market liquidity? These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Liquidity is important and necessary. Liquidity is an assumed characteristic of a well-functioning market, but we only pay attention to it when it is absent—like the proverbial umbrella that is missing when it rains. 1 What is market liquidity? Can we measure market liquidity? Can we manage market liquidity? These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Key concepts: Market liquidity, Accounting liquidity, Liquidity crisis, Liquidity risk, Market impact, Liquidity premium, Monetary economics, Business