Krishnamurthy, Arvind - 2016
-2014 and investigate the time-series and cross-sectional patterns of banks' liquidity and liquidity risk. Aggregate banking … a stress test could have revealed the fragility of the banking system in early 2007. In the cross section, we find that … risk as well as the liquidity risk of the entire banking system. We compare the LMI measure of liquidity to other measures …