Area and US data. We find that agency problems in financial contracts, liquidity constraints facing banks and shocks that …

Area and US data. We find that agency problems in financial contracts, liquidity constraints facing banks and shocks that …

We develop an empirical framework that links micro-liquidity, macro-liquidity and stock prices. We provide evidence of … a strong link between macro-liquidity shocks and the returns of UK stock portfolios constructed on the basis of micro-liquidity … measures between 1999-2012. Specifically, macro-liquidity shocks, which are extracted on the meeting days of the Bank of …

Funding liquidity, i.e., the ease with which firms, investors and consumers can obtain funding, is a key property of …. Finally, the response of equity and house prices to the easing of funding conditions is stronger following shocks to liquidity … liquidity cycles and unconventional monetary policies. …

policy shocks. We show that their effects on U.S. banks' balance sheets, asset markets, and economic activity hinge on the …