Read this article in Hindi to learn about the liquidity preference theory of interest. इस सिद्धान्त का प्रतिपादन प्रसिद्ध अर्थशास्त्री जे. एम. कीन्स (J. M. Keynes) ने 1936 में प्रकाशित अपनी पुस्तक 'General Theory of Employment, Interest and Money' में किया । कीन्स के अनुसार ब्याज दर पूर्णतः एक मौद्रिक घटना है । उनके अनुसार ब्याज की दर मुद्रा की [...]
Liquidity Preference Theory of Rate of Interest! What is Liquidity Preference? "Liquidity preference is the preference to have an equal amount j ^ of cash rather than claims against others." -Prof. Mayers Determination of Interest: According to liquidity preference theory, interest is determined by the demand for and supply of money. It is determined at a point where supply of [...]
Some of the major importance of liquidity preference theory in interest rate are as follows: 1. Liquidity Trap: By liquidity trap, we mean a situation where the rate of interest cannot fall below a particular minimum level. It means rate of interest is always positive. It cannot be zero or negative. It can be shown with the help of Fig. [...]