In this paper we study European banks' demand for short-term funds (liquidity) during the summer 2007 subprime market …-turmoil liquidity costs, as estimated by our model, are predictive of their post-turmoil liquidity costs, and that there is considerable …

provided by the uniform squeeze in liquidity, which affected all banks in our sample. We study the first link in the … liquidity …

The paper presents a model of a monetary economy where there are differences in liquidity across assets. Money … on assets, reflecting their differences in liquidity. The model is used, first, to investigate how aggregate activity and … asset prices fluctuate with shocks to productivity and liquidity; second, to examine what role government policy might have …

prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to … monetary policy as well as the microstructure of the market where it is traded. These liquidity considerations imply a positive … anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity …

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

initial effects of financial innovation and crash can be summarized by a parameter that determines the "liquidity" or …, lower policy interest rates increase asset prices and steady-state output which, however, gets reversed as liquidity is … of capital may lower the welfare of the representative individual, even if the higher liquidity of capital is sustainable …