stabilizing role in financial markets by supplying liquidity and reducing market volatility. While characteristics such as a lack …

liquidity in dollars kept traders from arbitraging away excess profits. Risk factors, instead, are mostly insignificant …. Liquidity factors involve intermediaries cutting back loans to arbitrageurs in order to shrink their balance sheet, and hoarding … liquidity to cover their own funding strains. In addition, it seems that arbitrageurs themselves had insufficient pledge …

and central banks are looking for ways to obtain “liquidity assurance”, i.e., the assurance of having access to … international liquidity if they need it. This article discusses how such assurance might be provided, whether by multilateral means …

outcomes during systemic liquidity crises. I examine firms that had raised capital through foreign public issuances, to analyze … their outcomes during two types of systemic liquidity crises: a domestic crisis and a foreign crisis. I find that firms with … foreign financing were less liquidity constrained and had better outcomes during the domestic liquidity crisis. They were also …

We define liquidity as the flexibility to move goods (money) from one project (investment) to another. We show that … credit constraints on demand by themselves can cause an under-supply of liquidity, without the uncertainty, intermediation … liquidity is like a commodity: according to our offsetting distortions principle, a distortion in the demand for any good can …

Volume-based liquidity ratios suffer from potential measurement bias due to share restriction and may misrepresent … actual liquidity. In this paper, we develop a modified metric, the free-float liquidity ratio. We argue that this measure is … better suited to estimate liquidity in the presence of trading constraints as can be found in family-owned businesses or …

sensitivity of these strains to risk sentiment deterioration. Cross-border flows through banks for excess liquidity support … facilities leaves longer-term patterns of cross-border liquidity and capital flows broadly unchanged. While official sector … liquidity hoarding and “dash for cash” activity are expected to be lower with access to these facilities, initial evidence does …

instruments used in the sterilization are illiquid or result in fiscal deficits that reduce the liquidity of the private sector … country's international liquidity during the external crisis and reversal, as would be the case with a successful … sterilization, but just a decline in domestic private liquidity. The impact of the latter on relative asset prices creates a sort of …