of Lehman Brothers. Rather than a complete collapse of lending in the presence of a market wide shock, we see that banks …, we do not find that worse performing banks start hoarding liquidity and indiscriminately reduce their lending …

This paper explores how international money markets reflected credit and liquidity risks during the global financial … markets, while liquidity risk caused the difference across the currency denominations. They also support the view that a … shortage of US dollar as liquidity distorted the international money markets during the crisis. We find that coordinated …

Central banks provide public liquidity to traditional (regulated) banks with the intention of stabilizing the financial … system. Shadow banks are not regulated, yet they indirectly access such liquidity through the interbank system. We build a … model that shows how public liquidity provision may change the linkages between traditional and shadow banks, increasing …

allows banks in different regions to smooth local liquidity shocks by borrowing and lending on a world interbank market. We … show under which conditions financial integration induces banks to reduce their liquidity holdings and to shift their … portfolios towards more profitable but less liquid investments. Integration helps reallocate liquidity when different banks are …

liquidity crises and bank runs. Cooperation among reserve banks was essential for the cohesion and stability of the US monetary … imbalances did not grow endlessly, instead narrowing when region-specific liquidity shocks subsided, mutual assistance created …

uncertainty as Knightian. We show that when aggregate liquidity is low, an increase in uncertainty leads agents to a series of … protective actions -- decreasing risk exposures, hoarding liquidity, locking-up capital -- that reflect a flight to quality …