Acharya, Viral V.; S. Viswanathan - National Bureau of Economic Research <Cambridge, Mass.> - 2010
drying up of liquidity. Financial firms raise short-term debt in order to finance assetpurchases. When asset fundamentals … de-lever by selling assets to better-capitalizedfirms. Thus the market liquidity of assets depends on the severity of the … market liquidity can in fact be greater.... …
