We use daily data on bank reserves and overnight interest rates to document a striking pattern in the high … analyze a model federal funds market where uncertain liquidity flows transaction costs induce banks to delay trading bid up … interest rates at end each period. In this context, central bank's interest-rate-smoothing policy causes high supply liquid be …

stabilizing their own liquidity at high frequency. The latter institution follows a much more "hands-on" approach involving daily … intervention to fine-tune the liquidity of the banking system. We review the implications of these contrasting approaches, focusing … from their customary style of liquidity management. We find that, despite differences in operational framework, certain …

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more highly correlated; moreover, at these times, money supply positively affects financial market liquidity, albeit with a … lag of two weeks. During normal times, increases in mutual fund flows enhance stock market liquidity and trading volume …, but during financial crises, U.S. government bond funds see higher inflows, resulting in increased bond market liquidity …

This paper explores liquidity movements in stock and Treasury bond markets over a period of more than 1800 trading days …. Cross-market dynamics in liquidity are documented by estimating a vector autoregressive model for liquidity (that is, bid … in one market affects the spreads in both markets, and that return volatility is an important driver of liquidity …