-quality firms. Public liquidity support preserves the overall production capacity. However, by dampening the cleansing effects, it … the expectations of liquidity support that motivate low-quality firms to overinvest pre-crisis. Finally, the size of … on savings discourage firms from self-insurance against crises through internal liquidity accumulation …

We analyze the role of loan maturity and collateral eligibility for the transmission of central bank liquidity … extended the ECB liquidity maturity—in Italy, where banks benefited from a government guarantee program that effectively … (i) the maturity extension supported banks' credit supply and (ii) banks used most liquidity to buy domestic government …

We examine the system-wide effects of liquidity regulation on banks’ balance sheets. In the general equilibrium model … value before maturity, e.g., structured securities. By improving the liquidity of interbank markets, tighter liquidity … requirements induce banks to invest in such complex assets. We evaluate the welfare properties of combining liquidity regulation …

countries. This paper develops a two-country New Keynesian model { calibrated to represent a high- and a low-liquidity euro area …. These dampening effects are higher in the high-liquidity country. We find similar results in response to a monetary policy …

When a bank receives credit from the central bank, its Liquidity Coverage Ratio (LCR) changes. In most cases, the LCR …