What Is a Liquidity Crisis ?
نویسنده
چکیده
This paper investigates the role of liquidity. It is argued that the firm holds money as a guarantee of solvency to its contractual partners. By holding liquid assets the firm is able to increase the efficiency of its contracts. Variations in the opportunity cost of holding money cause variations in the firm’s demand for money and consequent variations in the frequency of contract failures, This mechanism is suggested as an alternative explanation of the observed relationship between money, income, and interest rates. Journal of Economic Literature Classification Numbers: 023, 026, 131, 311, 315. ,D 1988 Academic Press. Inc.
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تاریخ انتشار 2003