Summary of Getting a Grip on Liquidity
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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.
In this summary, you will learn
- What liquidity entails,
- How different types of liquidity interact and
- Why understanding liquidity is still a work in progress.
About the Author
Paula Tkac is a senior economist and vice president of the Federal Reserve Bank of Atlanta.
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