in their business cycles relative to those of advanced economies. Information on the domestic price of risk, cost of …

well-functioning marketplace will also exist in the future. Market liquidity risk is the risk that the market will function … effects of market liquidity risk on asset pricing, investment management, corporate finance, banking, financial crises …

in their business cycles relative to those of advanced economies. Information on the domestic price of risk, cost of …

When liquidity chasing banks is high, loan officers (or risk-takers) inside banks expect future losses to be readily … asset price bubbles in the economy. To curb such risk-taking incentives at banks and the resulting asset bubbles, Central …

liquidity. Inside banks, given lack of observability of effort, loan officers (or risk takers) are compensated based on the … macroeconomic risk, investors reduce direct investment and hold more bank deposits. This ‘flight to quality’ leaves banks flush with … in order to curb risk-taking incentives at banks, and conversely, follow an expansionary monetary policy in times of …

worsen, debt induces firms to risk-shift; this limits their funding liquidity and their ability to roll over debt. Firms may …