Liquidity Issues in the Market. Engr. U. Achinnanya |
Market liquidity is self-sustaining and can also improve on its own without any external support. Also, the problem of low liquidity can be self-sustaining, in which case individual market participants may have little incentive or capacity to address it. An electricity market is said to have attained a Low-Liquidity Equilibrium (LLE) when it is obvious that liquidity cannot improve from its own internal resources.
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