IDEAS home Printed from https://ideas.repec.org/a/fip/fedpbr/y2008iq2p13-22.html
   My bibliography  Save this article

Liquidity crises

Author

Listed:
  • Ronel Elul

Abstract

Financial markets have experienced several episodes of “liquidity crises” over the past 20 years. One prominent example is the collapse of the Long Term Capital Management hedge fund in 1998. The recent market disruption brought about by the downturn in subprime mortgages also shares many features with liquidity crises. What is liquidity? Why does it sometimes seem that the market’s supply of it is insufficient? Can anything be done about it? In “Liquidity Crises,” Ronel Elul outlines some theories of market liquidity provision, how it breaks down in times of crisis, and some possible government responses.

Suggested Citation

  • Ronel Elul, 2008. "Liquidity crises," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 13-22.
  • Handle: RePEc:fip:fedpbr:y:2008:i:q2:p:13-22
    as

    Download full text from publisher

    File URL: http://www.philadelphiafed.org/research-and-data/publications/business-review/2008/q2/elul_liquidity-crises.pdf
    Download Restriction: no

    More about this item

    Keywords

    Liquidity (Economics);

    Statistics

    Access and download statistics

    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:fip:fedpbr:y:2008:i:q2:p:13-22. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul). General contact details of provider: http://edirc.repec.org/data/frbphus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.