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liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …
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firms with higher cash reserves are less likely to default in the short term, endogenously determined liquidity may be …
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This paper outlines important lessons for monetary policy. In particular, the role of inflation targeting, which was much acclaimed prior to the financial crisis and since then has not lost much of its endorsement, is critically reviewed. Ignoring the relation between monetary policy and asset...
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