netting privileges enjoyed by derivatives are essential to reducing legal uncertainty, increasing liquidity, and minimizing …

-the-counter, the price that the entrepreneur receives for the assets that he sells depends on the amount of liquidity (cash) that is in … the OTC market: Greater levels of liquidity lead to higher asset prices. Since asset prices are linked to liquidity, they …

at several maturities into components reflecting counterparty credit risk and funding-market liquidity. To account for … within a model of the costs and benefits of lying. We find that Libor spreads typically consist mostly of a liquidity premium … longer maturities, credit risk explains much of the time variation in Libor, reflecting in part fluctuations in the degree to …

large increases of liquidity adopted by the government. The policy implications are in sharp contrast with the prevalent … view in most Central Banks, based on the New Keynesian explanation of the liquidity trap. …