do other economic theories build on or challenge liquidity preference theory 
several contemporary economic theories challenge or build upon liquidity preferences rational expectations and market efficiency theories often posit that markets adjust quickly to new information which might undercut the speculative motive for liquidity preference developing financial instruments and technologies that enhance liquidity and manage liquidity risk can also lead to rethinking liquidity preference modern monetary theory and post keynesian economics build upon or extend keynesian ideas including liquidity preference theory however to explain modern economic phenomena 