Premium
Financial Market Liquidity and the Financial Crisis: An Assessment Using UK Data *
Author(s) -
Martin Christopher,
Milas Costas
Publication year - 2010
Publication title -
international finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 39
eISSN - 1468-2362
pISSN - 1367-0271
DOI - 10.1111/j.1468-2362.2010.01269.x
Subject(s) - market liquidity , economics , liquidity crisis , financial crisis , liquidity trap , monetary policy , financial market , liquidity risk , market data , funding liquidity , financial system , finance , monetary economics , macroeconomics
A steady increase in financial market liquidity followed by a rapid reduction played a central role in the financial crisis that began in 2007. We present empirical evidence that the marked rise in liquidity in 2001–07 was due to large and persistent current account deficits and loose monetary policy.