single, source country) sufficiently large to push one or both countries into a liquidity trap. The zero lower bound on … study conditions under which a liquidity trap in one country might spillover to a trading partner. We study, under which … conditions, a liquidity trap in one country will lead to a liquidity trap in another country. We also show conditions under which …

spending on several indicators of liquidity, volatility, credit and economic activity. Data from the 2003-2011 period in the … decrease in volatility and increase in liquidity on North American stock markets, the shocks were mainly domestic and … ineffective at generating liquidity in the banking sector. In contrast, government spending shocks had a positive impact on credit …

The recent experience with low inflation has reopened interest in the liquidity trap; which occurs when the nominal … interaction, we find that the optimal institutional response to the possibility of a liquidity trap has two main components. First …

liquidity trap. Using a standard New Open Economy Macroeconomics (NOEM) model, an optimizing two-country sticky price model, we …

We study the effects of monetary and fiscal policies when both money and government bonds provide liquidity services … the supply of bonds. Those movements in government bond prices affect available liquidity, and therefore aggregate demand … interest rate on money. We conclude that in a liquidity-dependent world, fiscal and monetary policies are joined at the hip …

—the liquidity premium. We rationalize this finding in an estimated heterogeneous-agent New-Keynesian (HANK) model with incomplete … markets and portfolio choice, in which public debt affects private liquidity. In this environment, the short-run fiscal … multiplier is amplified by the countercyclical liquidity premium. This liquidity channel stabilizes investment and crowds in …