Firms with limited internal liquidity significantly increased prices in 2008, while their liquidity unconstrained …. These results reflect the firms' reaction to preserve internal liquidity and avoid accessing external finance, factors that …

We examine a theoretical model of liquidity with three assets - money, government bonds and equity - that are used for … transaction purposes. Money and bonds complement each other in the payment system. The liquidity of equity is derived as an … equilibrium outcome. Liquidity cycles arise from the loss of confidence of the traders in the liquidity of the system. Both open …

We study the transmission of liquidity shocks in a dynamic general equilibrium model where firms and households are … subject to liquidity risk. The provision of liquidity services is undertaken by financial intermediaries that allocate the … stock of liquid asset between the different sectors of the economy. We find that the macroeconomic effects of liquidity …

liquidity management. Agents face uninsurable idiosyncratic uncertainty regarding trading opportunities in a decentralized goods … market and must pay a fixed cost to rebalance their liquidity holdings in a centralized liquidity market. By endogenizing the … participation decision in the liquidity market, this model endogenizes the responses of velocity, output, the degree of market …

patterns of rms with poor credit quality are more closely associated with credit spreads, a measure of market liquidity level …

We provide a liquidity-based theory for the dominant use of the US dollar as the unit of denomination in global debt … endogenously raises its liquidity, incentivizing more issuance. We rationalize features of the current dollar …

Firms hold less cash (i.e. internal-liquidity) when their local bank branching network is dense. The effect strengthens ….e. external-liquidity) and are able to mitigate investment contractions during economic downturns. Using a quasi …