provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

We develop a model in which financial intermediaries hold liquidity to protect themselves from shocks. Depending on … parameter values, banks may choose to hold too much or too little liquidity on aggregate compared with the socially optimal … underinsurance against liquidity choice. The model therefore provides a unified framework for thinking, on the one hand, about policy …

provide liquidity at a very high rate of interest. However, most of the theoretical literature on liquidity provision suggests … reserves available is limited. A high price for this liquidity allows banks that need it most to self-select. To the contrary …. -- liquidity provision ; lender of last resort ; Bagehot ; commodity money …