in 2017, there was no commensurate shrinkage of these claims on liquidity. Consequently, the financial sector was left … more sensitive to potential liquidity shocks, with weaker-capitalized banks most exposed. This necessitated Fed liquidity … provision in September 2019 and again in March 2020. Liquidity-risk-exposed banks suffered the most drawdowns and the largest …

Can banks maintain their advantage as liquidity providers when they are heavily exposed to a financial crisis? The … liquidity insurer is not one of the passive recipient, but of an active seeker, of deposits. We find that banks facing a funding … liquidity demand shocks (as measured by their unused commitments, wholesale funding dependence, and limited liquid assets), as …

We introduce liquidity frictions into an otherwise standard DSGE model with nominal and real rigidities and ask: Can a … shock to the liquidity of private paper lead to a collapse in short-term nominal interest rates and a recession like the one … interventions in which the government provides liquidity in exchange for illiquid private paper? We find that the effects of the …

This paper explores how international money markets reflected credit and liquidity risks during the global financial … markets, while liquidity risk caused the difference across the currency denominations. They also support the view that a … shortage of US dollar as liquidity distorted the international money markets during the crisis. We find that coordinated …

the international liquidity management aspect of sterilization over the traditional monetary one, a re-focus that seems … liquidity management issues more generally …

This paper deals with the relations among international liquidity,the exchange-rate regime and the effectiveness of … provision of liquidity …

market liquidity and shorter debt maturity can exacerbate this externality and cause costly firm bankruptcy at higher … fundamental thresholds. Our model provides implications on liquidity-spillover effects, the flight-to-quality phenomenon, and …

liquidity and liability management more generally …

liquidity effects. This paper discusses the basic frictions and mechanisms underlying this new class of models and investigates … long-lasting, quantitatively significant liquidity effects, as well as persistent increases in aggregate economic activity …

This paper studies a model where money is valued for the liquidity services it provides in the future. These liquidity … services cannot be provided by any other asset. Changes in expectations of the value of future liquidity services affect the …. Furthermore, shifts between money and other assets that are driven by precautionary liquidity demand make nominal interest rates …