-sale prices make it attractive for banks to hold liquid assets. We show that the resulting choice of bank liquidity is counter … crises may be desirable ex post. However, policies aimed at resolving crises affect ex-ante bank liquidity in subtle ways …: while liquidity support to failed banks or unconditional support to surviving banks in acquiring failed banks give banks …

What is the effect of financial crises and their resolution on banks' choice of liquidity? When banks have relative … resulting choice of bank liquidity is counter-cyclical, inefficiently low during economic booms but excessively high during … ex post, they affect bank liquidity in subtle ways: Liquidity support to failed banks or unconditional support to …

-sale prices make it attractive for banks to hold liquid assets. We show that the resulting choice of bank liquidity is counter … crises may be desirable ex post. However, policies aimed at resolving crises affect ex-ante bank liquidity in subtle ways …: while liquidity support to failed banks or unconditional support to surviving banks in acquiring failed banks give banks …

-sale prices make it attractive for banks to hold liquid assets. We show that the resulting choice of bank liquidity is counter … crises may be desirable ex post. However, policies aimed at resolving crises affect ex-ante bank liquidity in subtle ways …: while liquidity support to failed banks or unconditional support to surviving banks in acquiring failed banks give banks …