Financial Markets, Institutions and Liquidity
نویسنده
چکیده
One important reason for the global impact of the 2007–2009 financial crisis was massive illiquidity in combination with an extreme exposure of many financial institutions to liquidity needs and market conditions. As a consequence, many financial instruments could not be traded anymore; investors ran on a variety of financial institutions, particularly in wholesale markets; financial institutions and non-financial firms started to sell assets at fire sale prices to raise cash; and central banks all over the world injected huge amounts of liquidity into financial systems.
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