repayment. The theory is used to answer a number of positive and normative questions: What are the determinants of the fed funds …

We trace the origins of China's rapidly developing shadow banking sector to the adoption of stricter liquidity rules by …

We introduce liquidity frictions into an otherwise standard DSGE model with nominal and real rigidities and ask: Can a … shock to the liquidity of private paper lead to a collapse in short-term nominal interest rates and a recession like the one … interventions in which the government provides liquidity in exchange for illiquid private paper? We find that the effects of the …

are real in theory, but remote in practice today …

November 1930, the Banque de France (BdF) lent selectively rather than broadly, providing substantially more liquidity to …

in 2017, there was no commensurate shrinkage of these claims on liquidity. Consequently, the financial sector was left … more sensitive to potential liquidity shocks, with weaker-capitalized banks most exposed. This necessitated Fed liquidity … provision in September 2019 and again in March 2020. Liquidity-risk-exposed banks suffered the most drawdowns and the largest …