We study the transmission of liquidity shocks in a dynamic general equilibrium model where firms and households are … subject to liquidity risk. The provision of liquidity services is undertaken by financial intermediaries that allocate the … stock of liquid asset between the different sectors of the economy. We find that the macroeconomic effects of liquidity …

We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … national liquidity requirements to proxy for banks' incentives to exploit this differential treatment of central bank eligible … national liquidity requirement pledge more and less liquid collateral than banks with a preceding national liquidity …

I study rollover risk in the wholesale funding market when intermediaries can hold liquidity ex-ante and are subject to … fire sales ex-post. I demonstrate that precautionary liquidity restores multiple equilibria in a global rollover game. An … intermediate liquidity level supports both the usual run equilibrium and an efficient equilibrium. I provide a uniqueness …

used to relax financial constraints. We show that firms that face idiosyncratic liquidity shocks are more likely to default … on trade credit, especially when the shocks are unexpected, firms have little liquidity, are likely to be credit … liquidity shocks they face on to their suppliers down the trade credit chain. The evidence is consistent with the idea that …

This paper quantifies liquidity and credit premia in German and French government bond yields. For this purpose, we …-`a-vis government bonds can be attributed to differences in liquidity premia. Adding the information on risk-free rates, we obtain model …

increased delays in public payments can affect private sector liquidity and profits and hence ultimately economic growth. We …

We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing …

, profitability and liquidity seem to play only a minor role in driving funding costs while the ECB monetary policy stance, sovereign …

Theoretically optimal responses of banks to various liquidity and solvency shocks are modelled. The proposed framework … liquidity or solvency problems. Performance of the model and sensitivity of optimal balance sheet structures to some key … effectiveness of the liquidity and solvency regulation. The flexible implementation of the model and its semi-analytical solvability …