This paper explains the emergence of liquidity traps in the aftermath of large-scale financial crises, as happened in …

finds that common shocks – key crisis events as well as changes to global liquidity and risk – have exerted a large effect …

banks to have private information about the risk of their assets. We show how banks’ asset risk affects funding liquidity in … state with adverse selection and elevated rates; and iii) market breakdown with liquidity hoarding. We provide an … of unsecured rates and excess reserves banks hold, as well as the inability of massive liquidity injections by central …

risk drivers. The choice of the credit risk drivers is inspired by the Merton (1974) model. Individual CDS liquidity and … explaining credit spread changes. Our decomposition reveals, however, highly changing dynamics in the credit, liquidity, and … different signals from liquidity based CDS spread changes than from business cycle or credit risk based changes. For the recent …

run role of excess liquidity (that we estimate endogeneously) for inflation is taken into account. …

Liquidity problems lie at the heart of crises on financial markets as demonstrated in this paper by detailed …, provided emergency liquidity to limit the negative effects of such crises. However, the anecdotal and empirical evidence from … the three crises shows that such emergency liquidity assistance implies risks to goods price stability if it is not …

particular, we do not find that worse performing banks began hoarding liquidity and indiscriminately reducing their lending. …