IDEAS home Printed from https://ideas.repec.org/h/pal/intecp/978-1-137-03425-0_7.html
   My bibliography  Save this book chapter

Liquidity Shocks and Asset Prices in the Business Cycle

In: The Global Macro Economy and Finance

Author

Listed:
  • Shouyong Shi

    (University of Toronto)

Abstract

Liquidity in the asset market has attracted increasing attention in public debate and academic research, partly because of the recession in 2008 and 2009 in the United States. At the onset of that recession, liquidity suddenly dried up in the asset market. In particular, the market for collateralized debt obligations almost shut down as major financial institutions either had or were perceived to have insufficient funds to meet their contractual obligations. To prevent a complete collapse of the financial market, the US government injected a large amount of liquid assets into the market through various lending facilities which ranged from short-term lending to outright purchases of private equity by the government.

Suggested Citation

  • Shouyong Shi, 2012. "Liquidity Shocks and Asset Prices in the Business Cycle," International Economic Association Series, in: Franklin Allen & Masahiko Aoki & Jean-Paul Fitoussi & Nobuhiro Kiyotaki & Roger Gordon & Joseph E. S (ed.), The Global Macro Economy and Finance, chapter 6, pages 118-130, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-137-03425-0_7
    DOI: 10.1057/9781137034250_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shi, Shouyong, 2015. "Liquidity, assets and business cycles," Journal of Monetary Economics, Elsevier, vol. 70(C), pages 116-132.
    2. Guohua He & Zirun Hu, 2023. "Precautionary Saving and Liquidity Shortage," Sustainability, MDPI, vol. 15(3), pages 1-15, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:intecp:978-1-137-03425-0_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.