assets are likely to serve as media of exchange or collateral (a definition of liquidity often employed in monetary theory …), or that they can be easily sold in a secondary market, if needed (a definition of liquidity closer to the one adopted in … finance)? We develop a model where these two notions of asset liquidity coexist, and their relative importance is determined …

In times of financial distress, central banks provide unlimited liquidity to avoid fire sales. In response, banks raise … investigate how unlimited liquidity provision affects collateral prices. Also, I match banks' trades with their balance sheet and … show how funding liquidity impacts premia payment. I quantify the Fire Buy premium to be 15.6 bps; and the Risk …

the second best, providing a rationale for the regulation and public provision of liquidity. Moreover, our model …We show that trade frictions in OTC markets result in inefficient private liquidity provision. We develop a dynamic … affect liquidity in secondary markets. This inefficiency can lead to liquidity that is suboptimally low or high compared to …

portfolios, but liquidity comes at a cost: inflation. The OTC market serves as a secondary asset market, in which agents can … rebalance their positions depending on their liquidity needs. Hence, a contribution of our paper is to provide a micro … value because they help agents avoid the inflation tax. -- monetary-search models ; liquidity ; asset prices ; over …

policy. Concerning regulation, we find that the banking reform of the late 1990s had little effect on the housing boom and … introduction may increase financial inflows into risky sectors, their execution through a clearing-house or regulation via other …

prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to … monetary policy as well as the microstructure of the market where it is traded. These liquidity considerations imply a positive … anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity …

liquidity. Pushing up prices at the traditional venue while selling in the dark pool might generate profits. If future returns … depend on historical dark pool liquidity, then sending orders to the dark pool can be worthwhile simply to gather information …