Liquidity and financial conditions
The availability and price of money across the system.
Liquidity and financial conditions
| Concept | Explanation | |---|---| | Market liquidity | Ability to trade assets without large price impact. | | System liquidity | Availability of money and funding in the financial system. | | Financial conditions | Combined effect of rates, credit spreads, currencies, equity prices, and lending standards. | | Tightening | Financing becomes more expensive or less available. | | Easing | Financing becomes cheaper or more available. |