differ in pledgability - the extent to which they can be used to secure loans - and hence liquidity. Although many previous …-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise …

differ in pledgability - the extent to which they can be used to secure loans - and hence liquidity. Although many previous …-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise …

This paper provides a framework to analyse emergency liquidity assistance of central banks on financial markets in … response to aggregate and idiosyncratic liquidity shocks. The model combines the microeconomic view of liquidity as the ability … to sell assets quickly and at low costs and the macroeconomic view of liquidity as a medium of exchange that influences …

Liquidity problems lie at the heart of crises on financial markets as demonstrated in this paper by detailed …, provided emergency liquidity to limit the negative effects of such crises. However, the anecdotal and empirical evidence from … the three crises shows that such emergency liquidity assistance implies risks to goods price stability if it is not …