The economic situation in a wide range of economies in the wake of the crisis that began in 2007 is characterised by many as a liquidity trap. The original conceptualization of the liquidity trap was part of Keynes’s (1936) theory of liquidity preference. It referred to a situation where the monetary authorities could not reduce the nominal long-term interest rate any further by selling bonds b...

This paper studies household asset demands by allowing certain assets to contribute directly to utility. It estimates the parameters of an aggregate utility function which includes both consumption and liquidity services. These liquidity services depend on the level of various asset stocks. We apply these estimates to investigate the longand short-run interest elasticities of demand for money, ...

The objective of the research was to find out and analyze influence profitability, leverage, liquidity, company size, auditor opinion KAP reputation partially on timeliness submission financial statements transportation companies listed Indonesia Stock Exchange. population in this study were 30 Exchange period 2017 - 2021. Samples selected using saturated samples where all populations included ...

We examine the impact of firm ownership composition on both the abnormal returns at the announcement of a stock split and liquidity changes following a stock split. We find three results. First, the largest post-split increase in institutional ownership occurs for firms that had low institutional ownership prior to the split. Second, changes in liquidity are negatively related to the level of i...

We report on a large number of laboratory market experiments demonstrating that a market bubble can be reduced under the following conditions: 1) a low initial liquidity level, i.e., less total cash than value of total shares, 2) deferred dividends, and 3) a bid–ask book that is open to traders. Conversely, a large bubble arises when the opposite conditions exist. The first part of the article ...

The contribution of this body of work is in developing new methods for modelling interactions in modern financial markets and understanding the origins of pervasive features of trading data. The advent of electronic trading and the improvement in trading technology has brought about vast changes in individual trading behaviours, and thus in the overall dynamics of trading interactions. The incr...

a r t i c l e i n f o JEL classification: C1 C11 E5 F3 Keywords: Foreign exchange reserves Liquidity management Gamma process In order to cope with daily foreign currency exchange payments or trades and avoid liquidity crisis, central banks need to maintain the liquidity of foreign exchange reserves. In this paper, we develop a Foreign Exchange Reserves Liquidity Management (FERLM) model based ...