likviidsusvajadust

Likviidsusvajadust, literally “desire for liquidity” in Estonian, denotes the tendency to hold a larger share of wealth in liquid form—such as cash, demand deposits, or other near-cash assets—rather than in illiquid investments. In macroeconomic theory, it corresponds to Keynes’s concept of liquidity preference, adapted for Estonian-speaking discourse, and is used to analyze how households and firms manage uncertainty and intertemporal trade-offs.

Determinants include precautionary motives, transaction needs, and speculative considerations. Elevated uncertainty about future income, tighter credit conditions, or expectations of rising interest rates can raise likviidsusvajadust, encouraging more cash holdings. Conversely, improved confidence in investment opportunities and lower perceived risk can reduce it.

Measurement is typically via the share of financial wealth held in liquid instruments, survey indicators of cash holdings, or implied liquidity premia in asset prices. The concept helps explain how monetary policy and financial conditions propagate to spending and investment: higher liquidity demand can blunt the stimulative impact of lower policy rates, while bursts of liquidity preference are common in crises.

Critiques point to heterogeneity across income levels, age, and institutions, as well as challenges in isolating liquidity demand from other savings motives. In practice, likviidsusvajadust interacts with risk aversion and liquidity risk, shaping portfolios and macroeconomic outcomes.

See also: liquidity preference, cash holdings, monetary transmission, precautionary saving.