habitat theory. We find that the effectiveness of these policies are similar to other studies in that the liquidity provided … several studies that point toward counter party risk, not lack of liquidity, as the problem in financial markets at the time …

We study the effects of the US Federal Reserve's large-scale asset purchase programs during 2008-2014 on bank liquidity … creation. Banks create liquidity when they transform the liquid reserves resulted from quantitative easing into illiquid assets …. As the composition of banks' loan portfolio affects the amount of liquidity it creates, the impact of quantitative easing …

dependent on banks' solvency and liquidity exposures. Our results highlight that it is necessary to take heterogeneity of …