The phrase "excess liquidity" refers to a situation where there is an abundance of money or cash in the economy. It means that there is more money available than is needed or being used for regular transactions. Full definition
Because banks usually lever at least 10 - 1, these $ 2.2 trillion in reserves represent a potentially massive amount of excess liquidity. (betterstockideas.com)
This helps to support excess liquidity and equity valuations. (businessinsider.com)
However, as excess liquidity dries up and global economic concerns weigh on the minds of investors, the reconciliation between cash flows and valuations has arrived. (newconstructs.com)