Illiquidity
in example sentence
Above all, the central bank must ensure that the money supply is large enough that mere
illiquidity
, rather than insolvency, does not force banks into bankruptcy and liquidation.
More example sentences with word illiquidity
To be sure, the many risks facing emerging markets still call for a highly differentiated stance, as market
illiquidity
can magnify the impact of shocks on prices.
Third, while the relative
illiquidity
of emerging markets has always demanded extra care, the liquidity risk premium for emerging-market assets may be more pro-cyclical than in the past.
But they must also be wary of analysts who are either incapable of, or uninterested in, distinguishing between causality and correlation, and between insolvency and
illiquidity.
Eighth, once a correction occurs, the risk of
illiquidity
and fire sales/undershooting will become more severe.
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