liquidity-preference theory

liquidity-preference curve [ liquidity-preference schedule ]

On the face of it, it is paradoxical because, in theory, it would be preferable that those other countries would have robust judicial systems and robust governance and would, in fact, themselves criminalize corruption properly, as we do domestically here in Canada.

17. Notes that the first agreement of May 2010 could not contain provisions for a restructuring of the Greek debt, despite it being first proposed by the IMF, which, in line with its usual practice, would have preferred an early debt restructuring; recalls the ECB's reluctance to consider any form of debt restructuring in 2010 and 2011 on the grounds that it would have led to the crisis having a contagion effect on other Member States, as well as its refusal to participate in the restructuring agreed in February 2012; notes that the Central Bank of Greece contributed in November 2010 to intensifying market turmoil by publicly warning investors that ECB liquidity operation ...[+++]s could no longer be taken for granted in the case of Greek sovereign debt; further notes that there was a commitment by Member States that their banks would retain their exposure to the Greek bond markets, which they were unable to maintain;

Disclosure of individual short positions to the public does not assist regulators in detecting market abuse and has three downsides: (1) it exposes holders of short positions to the possibility of short squeezes and other abusive behaviour; (2) it encourages herd behaviour, i.e. it makes it more likely that unsophisticated investors will sell in response to seeing a more sophisticated investor with a short position, thus exacerbating market declines; (3) it reduces liquidity because investors do not like their short positions to become known to companies and therefore prefer to avoid short selling.

If all we can say, for instance, is that in Poland there is simply no evidence for or against the theory that detention centres existed in that country, it would be best to remain silent.