Cho, Hoon; Ryu, Doojin; Sung, Sangwook - 2017
liquidity risk as a disincentive. The authors show that even with a major negative market shock, a financial institution can … increase its market investment if it has sufficient funding liquidity. In addition, their model reveals a positive relationship … between funding liquidity and liquidity flows. Thus, a distressed market might stabilize more quickly when financial …