fundamentals or a small revision of beliefs can create a self-reinforcing feedback loop that impairs credit provision, lowers asset … prices, and depresses economic activity and inflation. Finally, monetary policy may affect the buildup of vulnerabilities …

fundamentals or a small revision of beliefs can create a self-reinforcing feedback loop that impairs credit provision, lowers asset … prices, and depresses economic activity and inflation. Finally, monetary policy may affect the buildup of vulnerabilities …

sensitivity of these strains to risk sentiment deterioration. Cross-border flows through banks for excess liquidity support … facilities leaves longer-term patterns of cross-border liquidity and capital flows broadly unchanged. While official sector … liquidity hoarding and “dash for cash” activity are expected to be lower with access to these facilities, initial evidence does …

% to generate the same liquidity of a credit fire sale …We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new … multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated …

During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house …-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks …-estimated-dynamic model to measure the financial distress channel, we find that these two facts amplify the aggregate drop in consumption by 7 …