Bosshardt, Joshua; Kakhbod, Ali; Saidi, Farzad - 2021
value before maturity, e.g., structured securities. By improving the liquidity of interbank markets, tighter liquidity …We examine the system-wide effects of liquidity regulation on banks’ balance sheets. In the general equilibrium model … requirements induce banks to invest in such complex assets. We evaluate the welfare properties of combining liquidity regulation …