*noun*; the tendency for the public to want to hold income in cash relative to its willingness to hold it as interest-bearing savings (bonds).
The liquidity preference is analogous to a supply curve for lendable funds. If the price for lendable funds--that is to say, the interest rate--is high, then the amount be be large. If the interest rate is low, then the public will be more inclined to hoard income as cash.
Income held as cash is not spent on goods and services, so if the amount increases abruptly then there will be a recession. If it is held in some interest-bearing form, then it can be spent on fixed capital, thereby increasing output and employment.
During a recession, if the liquidity preference is high, a lot of money is going to be held as cash. One could free up some cash for job-creating investment by raising interest rates, but that would eradicate a lot of business opportunities. So monetary authorities monetize debt instead, creating a new supply of credit to replace the savings lost by falling interest rates.
The liquidity preference is analogous to a supply curve for lendable funds. If the price for lendable funds--that is to say, the interest rate--is high, then the amount be be large. If the interest rate is low, then the public will be more inclined to hoard income as cash.
Income held as cash is not spent on goods and services, so if the amount increases abruptly then there will be a recession. If it is held in some interest-bearing form, then it can be spent on fixed capital, thereby increasing output and employment.
During a recession, if the liquidity preference is high, a lot of money is going to be held as cash. One could free up some cash for job-creating investment by raising interest rates, but that would eradicate a lot of business opportunities. So monetary authorities monetize debt instead, creating a new supply of credit to replace the savings lost by falling interest rates.
...An individual’s liquidity preference is given by a schedule of the amounts of his resources, valued in terms of money or of wage-units, which he will wish to retain in the form of money....
John M. Keynes, *General Theory of Employment, Interest, and Money* (1936), Ch.13
John M. Keynes, *General Theory of Employment, Interest, and Money* (1936), Ch.13
by Abu Yahya March 3, 2009
Get the liquidity preference mug.One's preference for a particular type of sexual partner, regardless whether that preference is rigidly or casually held, and regardless how morally repugnant others may find that preference.
heterosexual, homosexual, bisexual, and pedosexual are all sexual preferences. Pedosexual propaganda uses pedophile as a euphemism in place of pedosexual to make it seem like it isn't all that bad.
by Downstrike May 30, 2004
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Racial preference is defined as favoring or choosing one group or individual over another based on race. Ethnic preference is often tied in, but less common since ethnicity is not always as easy to discern.
Example:
Example:
Basketball Player 1: "Sheeit guess the coach had to pick and choose with them two new boys"
Basketball Player 2: "Come on, Homie. Choice was obvious. Everyone knows white boys can't jump."
Basketball Player 1" Fuck, dude. I didn't know you'd be getting all racial preference on me."
Basketball Player 2: "Come on, Homie. Choice was obvious. Everyone knows white boys can't jump."
Basketball Player 1" Fuck, dude. I didn't know you'd be getting all racial preference on me."
by Stingy Meatballs January 10, 2016
Get the racial preference mug.to jack off with a preference in mind usually planned earlier in the day, possibly with a girl you know.
by big honkin shaft March 3, 2008
Get the preferencize mug.Aka. P.F.S.P.; When an individual will only sleep with people they are not romantically involved with. Please note this includes people who choose not to have romantic relationships with anyone for any reason.
Sid will only sleep with people he is not romantically involved with, because Sid does not believe in having romantic relationships. He has a partner free sexual preference.
by Vanguard 1998 April 15, 2021
Get the Partner free sexual preference mug.by Viktron April 5, 2018
Get the Kane’s Preference mug.A politically correct and evasive term for racist dating
Many people come up with this as an excuse to only date particular races because they "cannot help being attracted to a specific group of people"
The UN defines racial discrimination as "any distinction, exclusion, restriction or PREFERENCE based on race, colour, descent, or national or ethnic origin ..."
Believe it or not, many people also refuse to date their own race/ethnicity - that is also racist, no matter how you look at it
Many people come up with this as an excuse to only date particular races because they "cannot help being attracted to a specific group of people"
The UN defines racial discrimination as "any distinction, exclusion, restriction or PREFERENCE based on race, colour, descent, or national or ethnic origin ..."
Believe it or not, many people also refuse to date their own race/ethnicity - that is also racist, no matter how you look at it
Person 1: Man, that girl just turned me down because I wasn't black!
Person 2: She can't help it man; she only finds black people attractive
Person 1: What? That's racist!
Person 2: No man, it's "dating preference", get it right!
Person 2: She can't help it man; she only finds black people attractive
Person 1: What? That's racist!
Person 2: No man, it's "dating preference", get it right!
by iluvemp03 January 15, 2009
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