bank liquidity induces a tightening impact on credit supply, as intended when central banks reduce their balance sheets …. The tightening originates from the sudden relative convenience for banks accustomed to large liquidity holdings to more …

can give rise to persistent liquidity trap episodes. Unlike in the case of fundamental-driven liquidity traps, there is no …-driven liquidity traps. Raising the in ation target or appointing an in ation-conservative central banker improves in ation outcomes … sufficiently less concerned with government spending stabilization than society can eliminate expectations-driven liquidity traps …

We provide evidence that liquidity premia on assets that are more relevant for private agents' intertemporal choices … specification of liquidity premia based on assets' differential pledgeability to a basic New Keynesian model to replicate this … guidance period and are substantially smaller than if liquidity premia were neglected. This indicates that there are no …

area. In a structural VAR, we identify a liquidity shock rooted in the interbank market and use its impulse response … Gertler and Kiyotaki (2010). We highlight two main results. First, an identi.ed liquidity shock causes a sizable and … in 2008.09. Second, the liquidity injected in the market by the ECB played an important role in attenuating the …

’ funding structures jointly with that in their excess liquidity holdings. We find evidence that banks highly exposed to the …, importantly, the explicit consideration of the role of excess liquidity in our analysis. …

When a bank receives credit from the central bank, its Liquidity Coverage Ratio (LCR) changes. In most cases, the LCR …

explains the link between the liquidity premium and spreads. We present a theory of endogenous bank fragility arising from a …. This drives up both credit spreads and the liquidity premium. By mitigating the coordination friction, expansions of public … liquidity reduce spreads and boost the economy. Empirically, we identify high-frequency exogenous variation in liquidity by …