’s interventions during different stages of the crisis in terms of this literature. We interpret the Fed’s early-stage liquidity … periods of high liquidity risk. In contrast, reductions in the Fed’s liquidity supply in 2009 did not increase the spread. Our … analysis has implications for the impact on asset prices of a potential withdrawal of liquidity supply by the Fed. -- Financial …

' borrowing costs during the crisis. Our results have important implications for the provision of liquidity by central banks …

We model a safe asset market with investors valuing safety, investors valuing liquidity, and constrained dealers. While … safety investors and liquidity investors can interact symbiotically with offsetting trades in times of stress, we show that … liquidity investors' strategic interaction harbors the potential for selffulfilling fragility. Surprisingly, standard flight to …