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The mathematical equations Keynes wrote out in chapter 17, in explaining his generalization of his theory of liquidity … misleading scribbled margin notes in his copy of the General Theory in chapter 17 are basically using pA. Liquidity preference … has absolutely NOTHING to do with probability.The result has been that chapter 17 of the General Theory, which is quite …
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The recent crisis was characterized by massive illiquidity. This paper reviews what we know and don't know about illiquidity and all its friends: market freezes, fire sales, contagion, and ultimately insolvencies and bailouts. It first explains why liquidity cannot easily be apprehended through...
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