Chair of Monetary Economics

... with Thomas Gehrig (U Vienna) - open access in the Journal of Financial Intermediation. The existence of multiple motives in the demand for liquidity can significantly influence the provision of liquidity by banks. In what way depends on the interactions between market illiquidity and funding illiquidity. This expands and generalizes the standard theory of liquidity provision à la Bryant-Diamond-Dybvig, which focuses only on the effects of market illiquidity (13/12/2024).