Перейти к содержанию сайта
Getting a Grip on Liquidity
Article

Getting a Grip on Liquidity

Notes from the Vault


автоматическое преобразование текста в аудио
автоматическое преобразование текста в аудио

Editorial Rating

7

Qualities

  • Analytical
  • Well Structured
  • Background

Recommendation

In attempting to define pornography, Supreme Court Justice Potter Stewart quipped, “I know it when I see it.” In the case of liquidity, the quote would most likely be “I know it when I don’t see it.” Liquidity can mean many things to many people, but all agree that its absence is bad. Economist Paula Tkac thinks it’s time to get a grip on this slippery idea. getAbstract recommends Tkac’s thoughtful introduction and outline of liquidity to financial professionals.

Take-Aways

  • Bankers, traders and regulators each have their own definition of “liquidity.”
  • Institutional liquidity is a measure of a financial institution’s ability to survive crises.
  • Market liquidity gauges financial markets’ capacity to quickly and cheaply process trades without causing dramatic swings in prices.

About the Author

Paula Tkac is a senior economist and vice president of the Federal Reserve Bank of Atlanta.


Comment on this summary or Начать обсуждение

More on this topic

Learners who read this summary also read