This study analyzes the emergence of secular stagnation as the consequence of a rise in the preference for liquidity … model where agents derive utility from holding assets of different degrees of liquidity. In this environment, rational …

, this set-up gives rise to an (il-)liquidity premium on non-eligible assets. Then, a quantitative easing policy, which …

-in-advance economy. Liquidity transformation by banks increases aggregate consumption and investment relative to a cash-only economy but … can also lead to inefficient overinvestment. Furthermore, liquidity transformation can lead to multiple steady … 'liquidity trap', in which nominal bond rates equal zero and banks are indifferent between holding bonds and reserves. Whether …

provide liquidity at a very high rate of interest. However, most of the theoretical literature on liquidity provision suggests … reserves available is limited. A high price for this liquidity allows banks that need it most to self-select. To the contrary …. -- liquidity provision ; lender of last resort ; Bagehot ; commodity money …

Central banks repo market operations and liquidity infusions occasion a structural liquidity mismatch in bank balance … sheets and increase the dependence on central bank liquidity. This paper argues for what I term “Circular Monetary Economics …”, an approach to monetary policy that seeks to green and prudentially insulate the design and implementation of liquidity …

This paper studies the optimal maturity structure for government debt when markets for liquidity insurance are … in short and long maturities solves a liquidity insurance problem, but optimal yield curve policy is only possible if …

the absence of central bank intervention, the incentive of financial intermediaries to free ride on liquidity in good … states may result in excessively low liquidity in bad states. In the prevailing mixed-strategy equilibrium, depositors are … worse off than if banks would coordinate on more liquid investment. It is shown that public provision of liquidity improves …