Liquidity ratio

The liquidity ratio corresponds mathematically contrary to the Speed of circulation of the currency. These two concepts are used exactly in the same way by the economists, so for example locating its incidence

  • on the rate of Inflation (concerning the price of the goods and services)
  • or on the trend of the price of the financial credits and real,
according to whether the liquidities flow firstly on such or such of these sectors according to the behavior of the economic agents (see behavioral economy).

The concept is to be distinguished from that of working capital ratio , which compares the availabilities (liquidities) with the Actif of the assessment of a company to the debts in the close term with its liability. (see financial Ratio)

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