assets are likely to serve as media of exchange or collateral (a definition of liquidity often employed in monetary theory …), or that they can be easily sold in a secondary market, if needed (a definition of liquidity closer to the one adopted in … finance)? We develop a model where these two notions of asset liquidity coexist, and their relative importance is determined …

bond market liquidity. In order to stabilize these markets, policy makers recently proposed that the trading of corporate … only if it is feasible for him to also affect market liquidity, by either increasing or decreasing it. …

the liquidity role of a real asset that is subject to asymmetric information. We find that rather than using the asset … as the dominant medium of exchange. Furthermore, we show that a decrease in severity of asymmetric information in the … variables, such as the volume of trade in the secondary asset market, and the decision of agents to invest in information that …

. I focus on environments in which an asset owner has private information about both her liquidity state and asset quality …I study bargaining over prices between two investors in financial over-the-counter markets with asymmetric information …, and so a buyer is uncertain about the owner's true motive for selling—whether it is because of a liquidity need or because …

rates of return to compensate agents for their relative lack of liquidity. Consistent with empirical findings, our model …

state to compensate agents for their relative lack of liquidity. Second, since the difference in the yield of short and long … liquidity. …

In times of financial distress, central banks provide unlimited liquidity to avoid fire sales. In response, banks raise … investigate how unlimited liquidity provision affects collateral prices. Also, I match banks' trades with their balance sheet and … show how funding liquidity impacts premia payment. I quantify the Fire Buy premium to be 15.6 bps; and the Risk …