portfolios, but liquidity comes at a cost: inflation. The OTC market serves as a secondary asset market, in which agents can … rebalance their positions depending on their liquidity needs. Hence, a contribution of our paper is to provide a micro … value because they help agents avoid the inflation tax. -- monetary-search models ; liquidity ; asset prices ; over …

The Fed has responded to sharp drops in stock prices for two decades by pumping massive amounts of liquidity into the …

prevent a "run" on financial intermediation by injecting liquidity when asset values fall significantly. The inflationary side … a central bank to inject liquidity in a crisis. …

recognizable determines the extent to which they are acceptable in exchange - i.e., their liquidity. We analyze the effects of … monetary policy on asset markets. Recognizability and liquidity are endogenized by allowing agents to invest in information …