This paper offers a new framework for the assessment of financial market liquidity and identifies two types: search … liquidity and systemic liquidity. Search liquidity, i.e. liquidity in “normal” times, is driven by search costs required for a … trader to find a willing buyer for an asset he/she is trying to sell or vice versa. Search liquidity is asset specific …

. This trade-off generates a number of insights about the impact of market conditions, e.g. liquidity and trading horizons …

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

We study the prices that individual banks pay for liquidity (captured by borrowing rates in repos with the central bank … depend in particular on the distribution of liquidity across banks, which is calculated over time using individual banklevel … data on reserve requirements and actual holdings. Banks pay more for liquidity when positions are more imbalanced across …

busts, and analyses equity market reforms and excess liquidity as potential drivers of these stock price misalignments. Our … liquidity, seem to have significantly contributed to these misalignments. JEL Classification: G12, G18 …

liquidity was isolated from their interest rate expectations in March 2004. The paper offers two potential explanations for the … unexpected behavior. First, following the increased precision in the ECB’s liquidity provision after the end-of- period fine … tuning operations were added to the regularly applied tools, even a small bias in the liquidity supply could have resulted in …

provision of liquidity for a range of central-bank regulations dealing with the potential of bank failure. In our model, banks … issue and make reserve-management decisions which affect aggregate liquidity conditions. Numerical examples demonstrate bank …

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 …