Liquid capital

Liquid Capital, or Fluid capital is a readily convertible asset, such as money or other bearer economic instruments, as opposed to a long term asset like real estate. Liquid capital may be held by individuals, companies, or governments.

Globalization means that developing countries have easier access to liquid capital from around the world, but if a country becomes too dependent on foreign liquid capital any political or economic difficulties can be exacerbated by capital flight.

References

• Summary Conclusions of Round Table Policy Conference on Globalization, Governance and Stability: Key Lessons From the Asian Crisis