Normal view MARC view

A Model of financial market liquidity based on intermediary capital

Author: Gromb, Denis ; Vayanos, DimitriINSEAD Area: Finance Series: Working Paper ; 2010/22/FIN Publisher: Fontainebleau : INSEAD, 2010.Language: EnglishDescription: 12 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: We present a model of financial market liquidity provided by financially constrained intermediaries. We show that market liquidity increases with the level of intermediary capital. We also characterise conditions under which intermediaries play a stabilising or destabilising role in markets. Finally, we sketch a number of areas, including welfare and public policy, on which the model can shed light.
Tags: No tags from this library for this title. Log in to add tags.
Item type Current location Collection Call number Status Date due Barcode Item holds
INSEAD Working Paper Digital Library
PDF Available BC009089
Total holds: 0

We present a model of financial market liquidity provided by financially constrained intermediaries. We show that market liquidity increases with the level of intermediary capital. We also characterise conditions under which intermediaries play a stabilising or destabilising role in markets. Finally, we sketch a number of areas, including welfare and public policy, on which the model can shed light.

Digitized

There are no comments for this item.

Log in to your account to post a comment.
Koha 18.11 - INSEAD Catalogue
Home | Contact Us | What's Koha?