Read Illiquidity and All Its Friends

Illiquidity and All Its Friends

Jean Tirole

4.9/5 (25343 ratings)

Description:The recent crisis was characterized by massive illiquidity. This paper reviews what we know and don't know about illiquidity and all its friends: market freezes, fire sales, contagion, and ultimately insolvencies and bailouts. It first explains why liquidity cannot easily be apprehended through a single statistics, and asks whether liquidity should be regulated given that a capital adequacy requirement is already in place. The paper then analyzes market breakdowns due to either adverse selection or shortages of financial muscle, and explains why such breakdowns are endogenous to balance sheet choices and to information acquisition. It then looks at what economics can contribute to the debate on systemic risk and its containment. Finally, the paper takes a macroeconomic perspective, discusses shortages of aggregate liquidity and analyses how market value accounting and capital adequacy should react to asset prices. It concludes with a topical form of liquidity provision, monetary bailouts and recapitalizations, and analyses optimal combinations thereof; it stresses the need for macro-prudential policies.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Illiquidity and All Its Friends. To get started finding Illiquidity and All Its Friends, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.

Pages: 62

Format: PDF, EPUB & Kindle Edition

Publisher: —

Release: 2010

ISBN: AIYOAQAAMAAJ

Description: The recent crisis was characterized by massive illiquidity. This paper reviews what we know and don't know about illiquidity and all its friends: market freezes, fire sales, contagion, and ultimately insolvencies and bailouts. It first explains why liquidity cannot easily be apprehended through a single statistics, and asks whether liquidity should be regulated given that a capital adequacy requirement is already in place. The paper then analyzes market breakdowns due to either adverse selection or shortages of financial muscle, and explains why such breakdowns are endogenous to balance sheet choices and to information acquisition. It then looks at what economics can contribute to the debate on systemic risk and its containment. Finally, the paper takes a macroeconomic perspective, discusses shortages of aggregate liquidity and analyses how market value accounting and capital adequacy should react to asset prices. It concludes with a topical form of liquidity provision, monetary bailouts and recapitalizations, and analyses optimal combinations thereof; it stresses the need for macro-prudential policies.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Illiquidity and All Its Friends. To get started finding Illiquidity and All Its Friends, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.

Special Offer | $0.00

Special Offer! | $0.00

Illiquidity and All Its Friends

Illiquidity and All Its Friends

More Books

Economics for the Common Good

Economics for the Common Good

The Theory of Corporate Finance

The Theory of Corporate Finance

The Theory of Industrial Organization

The Theory of Industrial Organization

Le bien commun, le climat et le marché. Réponse à Jean Tirole

Le bien commun, le climat et le marché. Réponse à Jean Tirole

Laureat de La Medaille D'Argent Du Cnrs: Michael Lowy, Mathias Fink, Jean-Michel Saveant, Philippe Flajolet, Jacques Prost, Catherine Brechignac, Jean-Philippe Bouchaud, Michel Callon, Jean Tirole, Daniele Hervieu-Leger

Laureat de La Medaille D'Argent Du Cnrs: Michael Lowy, Mathias Fink, Jean-Michel Saveant, Philippe Flajolet, Jacques Prost, Catherine Brechignac, Jean-Philippe Bouchaud, Michel Callon, Jean Tirole, Daniele Hervieu-Leger

Jean Tirole: Theory of Industrial Organization (Hardcover); 1988 Edition

Jean Tirole: Theory of Industrial Organization (Hardcover); 1988 Edition

The Theory of Industrial Organization (MIT Press) by Jean Tirole (1988-08-01)

The Theory of Industrial Organization (MIT Press) by Jean Tirole (1988-08-01)

By Bengt Holmstrom, Jean Tirole: Inside and Outside Liquidity

By Bengt Holmstrom, Jean Tirole: Inside and Outside Liquidity

Financial Crises, Liquidity, and the International Monetary System

Financial Crises, Liquidity, and the International Monetary System