well-functioning marketplace will also exist in the future. Market liquidity risk is the risk that the market will function … effects of market liquidity risk on asset pricing, investment management, corporate finance, banking, financial crises …

liquidity. Inside banks, given lack of observability of effort, loan officers (or risk takers) are compensated based on the … macroeconomic risk, investors reduce direct investment and hold more bank deposits. This ‘flight to quality’ leaves banks flush with … in order to curb risk-taking incentives at banks, and conversely, follow an expansionary monetary policy in times of …

financial sector overhang may make bailouts tempting, they raise the risk of exacerbating the overhang related to sovereign debt …

focus on individual, rather than systemic, risk of financial institutions. Focusing on systemically important assets and … capable of inducing market discipline and mitigating moral hazard, but also capable of addressing the associated systemic risk …, for instance, due to the risk of fire sales of collateral assets. Furthermore, because of our focus on SIALs, our proposed …