Injecting liquidity into liquidity research

• We inject liquidity into liquidity research.
• We review the extensive relevant literature.
• Liquidity is important to the very existence and viability of markets.
• Liquidity is also critical to the pricing of assets.
• The macro economy, funds management and corporate finance.

In this paper, we aim to make more “liquid” our general understanding of liquidity research in finance. Our review of the relevant literature shows that it covers an extensive territory. Indeed, not only is liquidity important to the very existence and viability of markets, but it is also critical to the pricing of assets, the macro economy, funds management and corporate finance.