liquidity demanders rather than providers. The effects on security markets were large and persistent: Prices dropped relative to …

overshooting and a reduced liquidation value for the distressed trader. Hence, the market is illiquid when liquidity is most needed …

firms need cash in their production process and where financial shocks are made of both credit and liquidity shocks. We show … that external liquidity shocks generate a negative comovement between the cash ratio and employment. We analyze the dynamic …

meaningful risk-return relation in the FX market. Further analysis shows that liquidity risk also matters for expected FX returns …

and takers on various measures of market liquidity. …

finds that common shocks--key crisis events as well as changes to global liquidity and risk--have exerted a large effect on …

system: international liquidity and exchange rate management. Despite radical changes since World War II in the market … context for liquidity and exchange rate concerns, they remain central to discussions of international macroeconomic policy … coordination. To take two prominent examples of specific (and related) coordination problems, liquidity issues are paramount in …

During the recent financial crisis, central banks have provided liquidity and governments have set up rescue programmes … bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity and monitors too little. A … central bank can alleviate the liquidity problem, but induces moral hazard. Therefore, we introduce an additional authority …