LIQUIDITY TALK. "LIQUIDITY IS THE CATCH WORD OF THE DAY"
. Dan Carty. "Not so Golden Liquidity", Traders Insight

"Liquidity is the catch word of the day", complains Dan Carty. He goes on to suggest that people who talk about liquidity should at least be able to quantify it. I agree: that's what we do here every Friday morning! As for the rest of the piece, I have some doubts. Dan uses market-based indicators to arrive at a "liquidity demand model". Now, I happen to like market-based liquidity models myself (*). But are not market prices, by definition, always factoring in supply and demand?

(*) See the fast-aging but still wonderful book by Manuel Johnson & Robert Keleher. Monetary Policy. A Market Price Approach (Westport, Connecticut: Quorum Books, 1996).