Browsing School of Technology by Subject "liquidity shortages"
Now showing items 1-1 of 1
-
Aggregate liquidity shortages, idiosyncracic liquidity smoothing and banking regulation
(CFAP, Cambridge Judge Business School, University of Cambridge, 2005)This paper develops a model of banking fragility driven by aggregate liquidity shortages. Inefficiencies arise because liquidity smoothing across banks breaks down when there is such a shortage, causing unnecessary and ...