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random and therefore create liquidity risk, which in turn determines the supply of credit and the money multiplier. We study … profiting from lending and incurring greater liquidity risk. We calibrate our model to study quantitatively why banks have …
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the international liquidity management aspect of sterilization over the traditional monetary one, a re-focus that seems … liquidity management issues more generally …
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We study optimal macroprudential policy in a model in which unconventional shocks, in the form of news about future fundamentals and regime changes in world interest rates,interact with collateral constraints in driving the dynamics of financial crises. These shocks strengthen incentives to...
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about future fundamentals and regime changes in global liquidity, into a quantitative non-linear model of financial crises … significant variation across regimes of global liquidity and realizations of news shocks. Moreover, the effectiveness of the …
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