Rafael Benitez has called the transfer market "crazy" and dominated by money after unveiling new signing Glen Johnson at Anfield.

Liverpool spent £18.5 million on the England right back, a large part of which is cancelled out by the money Portsmouth still owe the club from the Peter Crouch transfer.

"We had to pay big money [for Johnson], the market is now crazy," Benitez said. "It is all money, money, money now. But we were signing a good player, an England player, and that is very positive. He has a good mentality and when I spoke to him first it was clear he wanted to come here.

"You have to adapt to a situation. Manchester City and big clubs in Europe are spending big money, so the market has changed and we have to work harder. You have to do that to stay at the level we are at."

Johnson insisted he was not swayed by the advances of both Chelsea and Manchester City ahead of his move to Anfield. "I didn't really come close to going back to Chelsea," he said. " Once I spoke to Rafa [Benitez] and knew what he wanted from me, it was an easy decision. The key was that he was keen to help me improve and turn me into a better player.

"City are buying some very good players and they will be a challenge. But you can buy good players and not necessarily buy a good team. I am coming here to win a few trophies. City will have their ambitions but so do I. Once I'd heard about Liverpool, and realising I would be playing with some really great players, it was an easy decision."

Benitez admitted that he had tried again to sign Gareth Barry from Aston Villa, but the midfielder eventually went to Manchester City. "We did go back, but as I said, it is all about money, money, money. It is as simple as that."

Despite their superior wealth, Benitez is curious about City's prospects for next season. "City have signed a lot of good players, but that is no guarantee they will win anything," he said. "It will be interesting to see what happens, but experience is more important and we feel that we have that to be in the top positions.

"If you spend big it is always easier to perform well. But when you have a good understanding between players that is also important. If they are together, they work hard, that is just as important."

Benitez has also had to contend with speculation surrounding Xabi Alonso, wanted by Real Madrid, and Javier Mascherano, a target for Barcelona, but he made it clear that he does not want to sell and would like to see some loyalty shown by the pair. "It is clear that they both are under contract with long-term agreements," he said. "That is it.

"We signed them both from different situations. Alonso was coming from Real Sociedad and nobody had really heard much of him outside of Spain, he did well and we renewed his contract because of that.

"Mascherano came from West Ham where he had not been doing well. We brought him here and gave him a good contract, so we are very pleased with them both and that Liverpool has been very good to them."

Benitez also dismissed rumours that full back Fabio Aurelio will be out for six months with a knee injury. "One, maybe two months, I expect him back by then," he said. "Certainly not six."