confined to project initiation, I find that: (1) when agents expect a liquidity dry-up on such markets, they optimally choose … to self-insure through the hoarding of non-productive but liquid assets; (2) such a response has negative externalities … as it reduces ex-post market participation, which worsens adverse selection and dries up market liquidity; (3) liquidity …

collapse then triggers a fire-sale that renders traditional banks vulnerable to "liquidity runs". The prospect of liquidity …

liquidity over incentives. Optimal interventions with commitment call for large, long-term subsidies in excess of what is … required to restore liquidity. …

This paper develops a two-country multi-frictional model where the freeze on liquidity access to commercial banks in …. Second, it allows dissociating pure liquidity contractions from non-walrasian financial shocks, arriving despite global …