demand for liquidity in the interbank market as wells as banks' access to this market. Results indicate that riskier banks … pay higher prices and borrow less liquidity, concurrent with the existence of market discipline. More capitalized and … higher prices and hoard liquidity when liquidity positions across them are more imbalanced and during a monetary policy …

markets may drive economies into recessions, it shows the following: (1) Liquidity traps may occur not only when interest … flexible exchange rates when the country is stuck in a liquidity trap; (3) Near the fringe of liquidity traps, the risk arises …

liquidity shortage in USD and reducing the spread between the 3-month Libor rate and the expected policy rate. I construct a … proxy for the 3-month liquidity risk premium based on data from the FX forward market which enables me to (i) decompose the … Libor spread into a liquidity premium and a credit premium, and (ii) test the effectiveness of the TAF in reducing the …