This is the Appendix of the paper "Public Liquidity and Financial Crises", "https://ssrn.com/abstract=3175101" https://ssrn.com/abstract=3175101.In this appendix, I show the numerical methods for solving the general equilibrium model that features infrequent financial crises and the private...

Is the supply of public liquidity important for alleviating financial crises? I quantify a general equilibrium model featuring the liquidity insurance channel: Banks demand public liquidity as insurance against liquidation losses during banking crises. Cheaper liquidity insurance increases...