In this study we examine the fundamental linkages between a single currency pair. The studied pair is the Australia Dollar and Peru Nuevo Sol from the dates 1994 to 2017. We perform a cointegration analysis and test for structural breaks at an unknown point in time. The results show that during...

This paper models emergency liquidity injection policies intended to prevent illiquidity-driven bank failures. A system-wide withdrawal of funding liquidity causes bank failures if banks' securities have low market liquidity relative to the withdrawal size. The model presents several policy...