Predatory trading may affect the incentives for banks to raise liquidity in times of financial distress. In these … crises: by altering the signal value of borrowing, this facility supports the injection of liquidity into distressed banks …

The effective liquidity supply of the economy—the weighted-sum of all assets that serve as media of exchange … trades to the Mortensen–Pissarides model. An increase in public liquidity through a higher supply of real government bonds … raises the real interest rate, crowding out private liquidity and increasing unemployment. If unemployment is inefficiently …

variations in how financial frictions are modeled and whether financial shocks affect asset liquidity or firms׳ collateral …

selection problem and, consequently, the interbank asset market provides insufficient liquidity. Investment is inefficiently low … reduce liquidity and may be counterproductive as a policy for increasing investment. Paradoxically, if it is directed to … firms with the greatest liquidity needs, an equity injection will reduce investment further. Asset purchase programs, like …