"This paper presents an equilibrium model for the demand and supply of liquidity and its impact on asset prices and … liquidity and large price deviations from fundamentals. Moreover, market forces fail to lead to efficient supply of liquidity … efficiency consequences. For example, lowering the cost of supplying liquidity on the spot (e.g., through direct injection of …

We analyze the welfare implications of liquidity constraints for households in an overlapping generations model with … growth. In a closed economy with exogenous technical progress, liquidity constraints reduce welfare if the economy is …

We analyze the welfare implications of liquidity constraints for households in an overlapping generations model with … growth. In a closed economy with exogenous technical progress, liquidity constraints reduce welfare if the economy is …