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 …

This paper studies the relationship between the size of the banking sector’s refinancing needs vis-à-vis the central … the total size of the banking sector’s refinancing needs. An empirical analysis then aims at determining the size of open …. Therefore, the analysis suggests that there is a lower bound for the amount of liquidity provided through short-term operations …

deleveraging, a market run, and a liquidity trap. Crises occur when there is too much liquidity (savings) in the economy with … respect to the number of (safe) investment opportunities. In effect, the economy is shown to have a limited liquidity … makes financial crises more likely when it exceeds the liquidity absorption capacity of the developed country. Thus, under …

This paper provides a simple weekly model of the regular supply of liquidity in the euro area, with a view to … understanding the functioning of the euro area money market. The main result of the analysis is that liquidity has normally been … deviations of the overnight rate from the main refinancing rate. Moreover the paper finds that liquidity has affected the …

busts, and analyses equity market reforms and excess liquidity as potential drivers of these stock price misalignments. Our … liquidity, seem to have significantly contributed to these misalignments. …