IDEAS home Printed from https://ideas.repec.org/a/mes/challe/v51y2008i3p43-56.html
   My bibliography  Save this article

Securitization, Liquidity, and Market Failure

Author

Listed:
  • Paul Davidson

Abstract

Computerized markets do not work the way the old securities markets once did. In the past, there were always market makers who stood between the buyer and the seller. Today, this is an antiquated system, relegated to such ancient institutions as the New York Stock Exchange. But this economist argues they are of far more than symbolic importance. Efficient markets will not guarantee liquidity, he says. The theory is wrong. And Keynes himself provides an important insight for how to proceed.

Suggested Citation

  • Paul Davidson, 2008. "Securitization, Liquidity, and Market Failure," Challenge, Taylor & Francis Journals, vol. 51(3), pages 43-56.
  • Handle: RePEc:mes:challe:v:51:y:2008:i:3:p:43-56
    DOI: 10.2753/0577-5132510303
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/0577-5132510303
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.2753/0577-5132510303?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Wu, Binghui, 2018. "Asset securitization and rate of return: A study on letters of guarantee," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 490(C), pages 1551-1554.
    2. Charfeddine, Lanouar & Benlagha, Noureddine, 2016. "A time-varying copula approach for modelling dependency: New evidence from commodity and stock markets," Journal of Multinational Financial Management, Elsevier, vol. 37, pages 168-189.
    3. Timothy C. Johnson, 2013. "Reciprocity as the foundation of Financial Economics," Papers 1310.2798, arXiv.org.
    4. Ben Fine, 2010. "Looking at the Crisis through Marx – Or Is It the Other Way About?," Chapters, in: Steven Kates (ed.), Macroeconomic Theory and its Failings, chapter 4, Edward Elgar Publishing.
    5. Michelle Baddeley, 2014. "Rethinking the micro-foundations of macroeconomics: insights from behavioural economics," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 11(1), pages 99-112, April.

    More about this item

    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:mes:challe:v:51:y:2008:i:3:p:43-56. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCHA20 .

    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.