A measure of the responsiveness of the demand for money to changes in interest rates. This is given by ε = -(dM/M)/(di/i) = -(i/M)(dM/di), where M is the demand for money and i is the interest rate.

• local authority housing
• local content
• local government
• local maximum
• local minimum
• location
• lock-out
• locomotive principle
• logarithm
• logarithmic scale
• logistic curve
• log-linear function
• log-normal distribution
• log-rolling
• Lomé Convention
• London Inter Bank Offered Rate
• London International Financial Futures and Options Exchange
• long-dated security
• long position
• long rate
• long run
• long-run average cost
• long-run marginal cost
• long-run Phillips curve
• long-term interest rate