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 …

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 …

finds that common shocks – key crisis events as well as changes to global liquidity and risk – have exerted a large effect …