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

The paper analyses the transmission of liquidity shocks and risk shocks to global financial markets. Using a Global VAR …

The paper analyses and compares the role that the tightening in liquidity conditions and the collapse in risk appetite … empirical exercise with a Global VAR approach, the findings highlight the diversity of the transmission process. While liquidity …

banks to have private information about the risk of their assets. We show how banks’ asset risk affects funding liquidity in … state with adverse selection and elevated rates; and iii) market breakdown with liquidity hoarding. We provide an … of unsecured rates and excess reserves banks hold, as well as the inability of massive liquidity injections by central …

insure consumers against privately observed liquidity shocks. Asset market investments insure consumers against losses from … bank runs. If the probability of a run is small, then banks specialize fully into the provision of liquidity insurance …: They provide a higher degree of liquidity insurance when compared to the economy with banks alone. If the probability of a …