The crisis of the advanced economies in 2008-09 has focused new attention on money and credit fluctuations, financial … crises, and policy responses. We study the behavior of money, credit, and macroeconomic indicators over the long run based on … half of the twentieth century as shown by a decoupling of money and credit aggregates. We show for the first time how …

-run historical work has uncovered a range of important stylized facts concerning financial instability and the role of credit in …

contingent capital proposed in the literature, the COERC is less risky in a world where bank assets can experience sudden jumps …. A bank that issues COERCs also has a smaller incentive to choose investments that are subject to large losses. …

rationed when they attempt to borrow in order to meet liquidity shocks. The rationed firms can optimally pledge cash as …-in-the-market pricing and depends on the entire distribution of liquidity shocks in the economy. As moral hazard intensity varies … market and funding liquidity and deep discounts observed in prices during crises that follow good times. …

creditors’ runs. We find that the principal lender, ‘the bank’, makes few concessions to the borrower and that there is a … virtual absence of debt forgiveness. Finally, the bank relies heavily on the highly collateralized value of its loan in making …

constructed ‘low minus high’ (LMH) stock turnover portfolio as a liquidity risk factor. The LMH factor produces significant betas …

and takers on various measures of market liquidity. …

liquidity cycles. Monitoring decisions by market-makers and market-takers are self-reinforcing, generating multiple equilibria … with differing liquidity levels and duration clustering. The trading rate is typically maximized when makers and takers are … make/take fees, the trading rate, the bid-ask spread, and the effects of algorithmic trading on liquidity and welfare. …

regulation of competition between liquidity suppliers or exchanges. …

We analyze the impact of financial crises and monetary policy on the supply of wholesale funding liquidity, and also on … the proprietary bank-to-bank European interbank dataset extracted from Target2 and also exploit the Lehman and sovereign … on interbank access and volume is stronger than on spreads. Liquidity supply restrictions are exacerbated for cross …