Financial markets and financial intermediation may be competing mechanisms in the provision of liquidity insurance and … when there is private information about liquidity shocks and alternative insurance mechanisms. Regions are subject to … idiosyncratic liquidity demand shocks and households are subject to liquidity preference shocks, where both types of shocks are …

buyers through partial retention of assets if and only if their liquidity holdings are large. However, when sellers … their liquidity holdings are small. The model is extended to study the implications for discount window lending and …

assets are likely to serve as media of exchange or collateral (a definition of liquidity often employed in monetary theory …), or that they can be easily sold in a secondary market, if needed (a definition of liquidity closer to the one adopted in … finance)? We develop a model where these two notions of asset liquidity coexist, and their relative importance is determined …

I extend and discuss the model of asset liquidity by Lester, Postlewaite, and Wright (2007, 2008). I consider a model … lower fraction of their asset holdings in matches where sellers are uninformed. Both the asset's price and its liquidity (as …

nominal variables. Money is not neutral, either in the short-run or long-run, and a localized version of the quantity theory … towards Pareto optimal rest-points. Below this growth rate, the economy enters a (sub-optimal) liquidity trap where monetary … policy is ineffective ; above this threshold inflation rises. Finally, market liquidity, measured through the speed of real …

liquidity risk, in a micro-founded search-theoretical monetary model. We calibrate the model to match the empirical aggregate …