This working paper surveys theoretical and empirical work about market liquidityand market liquidity risk. It addresses interested practitioners as well asstudents who want to gain a quick overview about the latest progress in researchin market liquidity.

China’s rise drives a growing impact of China on economics. So far, this mainly works via theforce of example, but there is also an emerging role of Chinese thinking in economics. Thispaper raises the question how far Chinese perspectives can affect certain foundational principlesin economics,...