deficiencies in prior studies, provide clear verification of the endogenous money supply theory, money effect on liquidity and on …The money supply impacts on interest rate and liquidity were first proposed in 1961 by Friedman, the late Nobel … laureate. The liquidity effect has yet received unanimous empirical support. Also, research interest on liquidity subsided in …

schemes affect liquidity provision and asset prices. Investors face a trade-off between risk and return. At the benefit of a … liquidity provision to force traders to trade at a lower price. By contrast, bonus caps make traders value the asset less than … investors. This should encourage liquidity provision and decrease prices. In contrast to these predictions, we find that under …