over faster than domestic assets because the former have desirable liquidity properties, but represent inferior saving …

We study the efficiency of dealers' liquidity provision and the desirability of policy intervention in over …' asset demands that lasts until a random recovery time. In this context, dealers can provide liquidity to outside investors …

monitor markets continuously. We study how limit order markets absorb transient liquidity shocks, which occur when a …

Financial assets provide return and liquidity services to their holders. However, during severe financial crises many … asset prices plummet, destroying their liquidity provision function at the worst possible time. In this paper we present a … not control or understand. The liquidity of the market quickly vanishes and a financial crisis ensues. The model exhibits …

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each …

emerging economy, and those affecting borrowing from foreign lenders. This 'dual liquidity' model offers a parsimonious …