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 …

, we do not find that worse performing banks start hoarding liquidity and indiscriminately reduce their lending …

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 …

We study the liquidity demand of large settlement banks in the UK and its effect on the Sterling Money Markets before … and during the sub-prime crisis of 2007-08. Liquidity holdings of large settlement banks experienced on average a 30 … this structural break, settlement bank liquidity had a precautionary nature in that it rose on calendar days with a large …

We introduce liquidity frictions into an otherwise standard DSGE model with nominal and real rigidities and ask: Can a … shock to the liquidity of private paper lead to a collapse in short-term nominal interest rates and a recession like the one … interventions in which the government provides liquidity in exchange for illiquid private paper? We find that the effects of the …

assets to survive runs. Regulation similar to the liquidity coverage ratio and the net stable funding ratio (that are soon be …

I describe two amplifications mechanisms that operate during liquidity crises and discuss the scope for central bank … disengage from markets and increase their demand for liquidity. This behavior leads to a loss of liquidity and a crisis …

funds act as liquidity providers. Hedge funds using Lehman as prime broker could not trade after the bankruptcy, and these …-connected hedge funds in turn experienced greater declines in market liquidity following the bankruptcy than other stocks; and, the … effect was larger for ex ante illiquid stocks. We conclude that shocks to traders' funding liquidity reduce the market …