liquidity /lɪkˈwɪdəti/ noun4 •The state or property of being liquid. •The degree of which something is in high supply and demand, making it easily convertible to cash. •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. •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. — 2011 formsliquidities
