determine asset liquidity. In our model, two asset suppliers try to profit from the liquidity services their assets confer …. Asset liquidity is indirect in the sense that assets can be sold for money in over-the-counter (OTC) secondary markets … liquidity of two assets. Asset demand curves can slope upward for evenmodest degrees of increasing returns in the matching …

We identify frictions in the market for liquidity as well as bank-specific and market-wide factors that affect the … prices that banks pay for liquidity, captured here by borrowing rates in repos with the central bank and benchmarked by the … liquidity. We find that the price a bank pays for liquidity depends on the liquidity positions of other banks, as well as its …

rates of return to compensate agents for their relative lack of liquidity. Consistent with empirical findings, our model …

's liquidity preference theory informs the analysis of the loss of policy space and widespread instabilities in emerging economies …

This paper explains the emergence of liquidity traps in the aftermath of large-scale financial crises, as happened in …

the promised cash flow, and liquidity refers to the ease with which an asset can be sold if needed. Mixing up these terms …’s safety and liquidity are well-defined and distinct from one another. Treating safety as a primitive, we examine the … relationship between an asset’s safety and liquidity in general equilibrium. We show that the commonly held belief that “safety …