simple exchange economy with three types of agents: regular stockholders, arbitrageurs and liquidity providers. Regular … increased stock volatility created by arbitrageurs with access to credit lines. Arbitrageurs and liquidity providers are at … least as well off. Optimal liquidity is found to be consistent with the existence of bubbles in stock and bond markets under …

Assets have "indirect liquidity" if they cannot be used as media of exchange, but can be traded to obtain a medium of … liquidity, provides closed form solutions for real and nominal assets, and discusses properties of the solutions. Some of these … for teaching concepts from monetary theory. …

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 …

recognizable determines the extent to which they are acceptable in exchange - i.e., their liquidity. We analyze the effects of … monetary policy on asset markets. Recognizability and liquidity are endogenized by allowing agents to invest in information …

This study analyzes the emergence of secular stagnation as the consequence of a rise in the preference for liquidity … model where agents derive utility from holding assets of different degrees of liquidity. In this environment, rational …

This paper provides a theoretical model to explain how securitization affects the overall liquidity and welfare of an …

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 …

risk-bearing capacity. Interestingly, we find significant changes in the composition of liquidity providers: hedge funds … buy a large share of the new issue outside pre-MPC windows, but refrain from liquidity provision in pre-MPC windows, and …