liquidity tightened after the Lehman collapse but there is no evidence of fire sales in the German banking sector. Instead, we … observe a broad-based flight to liquidity. The European Central Bank's unconventional monetary policy had a strong impact on … banks' trading behavior by inducing shifts towards eligible securities and reducing pressure on market liquidity. This …

liquidity over incentives. Optimal interventions with commitment call for large, long-term subsidies in excess of what is … required to restore liquidity. …

We investigate the channel through which fluctuations in the market liquidity of real-sector repo collateral cause … productive capital as repo collateral to fund the margin for their arbitrage positions. A tiny drop in the market liquidity of …), and can easily incur a simultaneous repo run and arbitrage crashes, where liquidity in several markets dry up altogether …

This paper studies the interaction between adverse selection, liquidity risk and beliefs about systemic risk in … determining market liquidity, asset prices and welfare. Even a small amount of adverse selection in the asset market can lead to … fire-sale pricing and possibly to a market breakdown if it is accompanied by a flight-to-liquidity, a misassessment of …

By analyzing a novel transaction-level dataset, this study reveals the microstructural liquidity dynamics around … scheduled macroeconomic announcements. Specifically, we examine whether investor composition contributes to liquidity … institutions before scheduled macroeconomic announcements impairs market liquidity, implying pre-announcement information asymmetry …

This paper introduces agent heterogeneity, liquidity, and endogenous default to a DSGE framework. Our model allows for … the economy. Due to liquidity and endogenous default, the transmission mechanism of shocks is well defined, and their …

policy and therefore ultimately the real economy. In particular, it facilitates banks' liquidity management. This paper aims … at extending the literature which views interbank markets as mutual liquidity insurance mechanism by taking into account … persistence of liquidity shocks. Following a theory of long-term interbank funding a financial system which is modeled as a micro …