The past two decades have seen the construction of a tiered system of international liquidity provision, the first tier …

ensuring that liquidity would be distributed to those institutions that needed it most. Conceptually, this meant America …

’s interventions during different stages of the crisis in terms of this literature. We interpret the Fed’s early-stage liquidity … periods of high liquidity risk. In contrast, reductions in the Fed’s liquidity supply in 2009 did not increase the spread. Our … analysis has implications for the impact on asset prices of a potential withdrawal of liquidity supply by the Fed. -- Financial …