Tag Info

New answers tagged


There are many different options. The Fed has a Senior Loan office survey of whether credit conditions have tightened or loosened. Macroeconomic forecasters often use this as part of U.S. GDP forecasting models. Other market-based variables, such as VIX and the spread between various bonds, to get a sense of financial conditions. There are also some ...


Turnover ratio does not quite cut it because high liquidity is not the same as high trading activity. A nicer definition is how sensitive is the price to a given volume that is bid or offered. For that, check out this paper.


Turnover ratio (TR) is one of the variables used. $TR_t=\frac{Total_. shares_. traded_. at_. time_. t}{Market_. capitalisation}$. This variable indicates the number of shares traded in a day. Liquidity is a tricky area and you will find various measures in various papers according the authors preference. I do not recommend directly using volume or market ...

Top 50 recent answers are included