Liquidity Concepts

  • Christian Schmaltz


Liquidity is a term with distinct but related meanings depending on the context. Traders, treasurers and central bankers use the term ’liquidity’, but mean different things.1 Because of this, it is necessary to de- and refine what we understand by liquidity. The literature distinguishes three liquidity concepts:2
  1. 1

    Asset Liquidity

  2. 2

    Institutional Liquidity

  3. 3

    National Liquidity



Central Bank Commercial Bank Market Maker Market Liquidity Default Reason 


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Copyright information

© Gabler | GWV Fachverlage GmbH 2009

Authors and Affiliations

  • Christian Schmaltz

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