With the euro's appearance in the world market, the competition between euro and dollar has become a hot-button issue. The author focuses on the movements of the euro/dollar exchange rate and probes into the determinants of its exchange rate. Their competition regarding invoicing and reserves...

We construct a novel dataset of sector-level U.S. Treasury holdings, covering the majority of the market. Using this dataset, we estimate maturity-specific demand functions and elasticities of different investors and the Fed, and integrate them into a dynamic equilibrium model of the Treasury...

We analyze the term structure of Treasury liquidity premium (LP). Through a model where illiquidity shocks can be alleviated by holding money and Treasuries, we show that the LP term structure is determined by (i) expectation of future liquidity conditions, (ii) liquidity term premium, (iii)...

Investors can execute trades through either brokers that trade on their behalf (agency intermediation) or dealers that trade with them (principal intermediation). We explain the heterogeneity in intermediation via the trade-off between monitoring brokers and incurring dealer inventory costs....

We develop a model of financial crises with both a financial amplification mechanism, via frictional intermediation, and a role for sentiment, via time-varying beliefs about an illiquidity state. We confront the model with data on credit spreads, equity prices, credit, and output across the...

We develop a model of financial crises with both a financial amplification mechanism, via frictional intermediation, and a role for sentiment, via time-varying beliefs about an illiquidity state. We confront the model with data on credit spreads, equity prices, credit, and output across the...

We develop a model of financial crises with both a financial amplification mechanism, via frictional intermediation, and a role for sentiment, via time-varying beliefs about an illiquidity state. We confront the model with data on credit spreads, equity prices, credit, and output across the...