Credit market freezes in which debt issuance declines dramatically and market liquidity evaporates are typically … bonds declined, and secondary credit markets became highly illiquid. In this paper we analyze liquidity in bond markets … during financial crises and compare two main theories of liquidity in markets: (1) asymmetric information and adverse …

We consider a model of liquidity demand arising from a possible maturity mismatch between asset revenues and … consumption. This liquidity demand can be met with either cash reserves (inside liquidity) or via asset sales for cash (outside … liquidity). The question we address is, what determines the mix of inside and outside liquidity in equilibrium? An important …

a drop in liquidity. It may also lead to a decline in the price-dividend ratio--a fire sale--and a flight to quality …

We present new evidence on consumer liquidity constraints and the credit market conditions that might give rise to them … the role of short-term liquidity in driving purchasing behavior, including sharp increases in demand during tax rebate …

selection and moral hazard, and exposure to liquidity shocks, and discuss the following implications for composition of capital … flows: 1. home court information advantage; 2. panic-based capital-flow reversals; 3. information-liquidity trade-off in the … presence of source and host country liquidity shocks; 4. moral hazard in international debt contracts; and 5. risk sharing role …