depository institutions skyrocketed, as the Fed injected liquidity into the U.S. banking sector. This paper introduces bank … liquidity risk and limited market participation into a real business cycle model with ex ante identical financial intermediaries …, whereas it matters for "uncertainty shocks", i.e. mean-preserving spreads in the cross-section of liquidity risk. Liquidity …

Global liquidity provision is highly procyclical. The recent financial crisis has resulted in a flight to safety, with … meet the liquidity needs of dysfunctional financial markets. As the eligibility criteria for central bank borrowing have … bank has the ability to create abundant official liquidity, there should be some limits to its support for the financial …