Episode notes
Episode Title: Unraveling Liquidity: A Deep Dive with Robert E. Lucas, Jr.Episode Notes:
... Read more- Introduction: Understanding liquidity - a cornerstone of any economy.
- Definition of Liquidity: The ease with which assets can be converted into cash without influencing their price.
- Importance: Ensuring financial fluidity for individuals and entities to honor their commitments.
- Two Sides of the Liquidity Coin:
- Too Much Liquidity: Potential risk of inflation.
- Too Little Liquidity: Risk of a downturn or recession.
- Analysis from "Liquidity: Meaning, Measurement, Management" by Robert E. Lucas, Jr.:
- Federal Reserve's Role: