policy and therefore ultimately the real economy. In particular, it facilitates banks' liquidity management. This paper aims … at extending the literature which views interbank markets as mutual liquidity insurance mechanism by taking into account … persistence of liquidity shocks. Following a theory of long-term interbank funding a financial system which is modeled as a micro …

liquidity shock related to the U.S. tapering observed in May 2013. We find that both liquidity shocks are associated with higher …This paper examines the impact of exogenous liquidity shocks on banks borrowing funds in the interbank market. We … evaluate the effects of idiosyncratic liquidity shocks — arising from deposits outflow at the bank level — and of the aggregate …

shock related to the U.S. tapering observed between May and September of 2013. We find that both liquidity shocks are …This paper examines the impact of exogenous liquidity shocks in the unsecured interbank market. We evaluate the effects … of idiosyncratic liquidity shocks - arising from deposits outflow at the bank level - and of the aggregate liquidity …

performing computational experiment with this mode, we find that is shows a pronounced non-linear behavior under shock: The …

find that fire-sale asset prices are efficient and that no liquidity hoarding occurs in equilibrium. While Gale and … Yorulmazer find that the market provides insufficient liquidity, we find that it provides too much liquidity. …

considering the shock propagation simultaneously across multiple layers of interbank networks can be substantially larger than the …

multiple bank defaults driven by common shock exposure on asset markets, direct contagion via the interbank market, and … firesale spirals. The central bank injects or withdraws liquidity on the interbank markets to achieve its desired interest rate … detrimental effects of higher risk taking incentives.We find that central bank supply of liquidity quite generally increases …