instruments used in the sterilization are illiquid or result in fiscal deficits that reduce the liquidity of the private sector … country's international liquidity during the external crisis and reversal, as would be the case with a successful … sterilization, but just a decline in domestic private liquidity. The impact of the latter on relative asset prices creates a sort of …

We study the effects of FX liquidity risk on carry trade returns using a low-frequency market-wide liquidity measure …. We show that a liquidity-based ranking of currency pairs can be used to construct a mimicking liquidity risk factor …, which helps in explaining the variation of carry trade returns across exchange rate regimes. In a liquidity-adjusted asset …

financial crisis. If such liquidity risk exists and is undiversifiable, then loose monetary policy should be associated with a …

This paper explains the emergence of liquidity traps in the aftermath of large-scale financial crises, as happened in … long time. -- liquidity trap ; financial crisis ; rare disasters ; equity capital ; leverage ; bankruptcy risk …

This paper discusses whether financial intermediaries can optimally provide liquidity, or whether the government has a … role in creating liquidity by supplying government securities. We discuss a model in which intermediaries optimally manage … liquidity with outside rather than inside liquidity: instead of holding liquid real assets that can be used at will, banks sell …