In recent years, disasters caused by climate change have brought marked losses to individual economic agents. To cope with fluctuating climate risks, climate policies have witnessed frequent adjustments worldwide, resulting in heightening uncertainty on climate policies that have become an...

This paper investigates liquidity spillovers between the US and European interbank market during turbulent and tranquil periods. We show that an endogenous model with time-varying transition probabilities is effective in describing the propagation of liquidity shocks within the interbank market,...