liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …

Estimating the liquidity differential between inflation-indexed and nominal bond yields, we separately test for time …-varying real rate risk premia, inflation risk premia, and liquidity premia in U.S. and U.K. bond markets. We find strong, model … to quantitatively similar degrees. The estimated liquidity premium between U.S. inflation-indexed and nominal yields is …

when countries cooperate in the face of a "global liquidity trap" - i.e., a situation where the two countries are … simultaneously caught in liquidity traps. Compared to the closed economy case, a notable feature of the optimal policy in the face of … a global liquidity trap is its international dependence. Whether or not a country's nominal interest rate is hitting the …

. Such a funding-liquidity crisis gives rise to "bases," that is, price gaps between securities with identical cash-flows but …

liquidity? US government debt has been liquid and safe, and it is supplied in sufficient quantity. But it has given a low return …

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 …