Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104242
Authors: 
Sauer, Stephan
Year of Publication: 
2007
Series/Report no.: 
Munich Discussion Paper 2007-26
Abstract: 
Liquidity problems lie at the heart of crises on financial markets as demonstrated in this paper by detailed descriptions of the stock market crash in 1987, the LTCM-crisis in 1998 and the financial market consequences of 11 September 2001. The events also demonstrate that modern central banks, in particular the U.S. Federal Reserve under Alan Greenspan, provided emergency liquidity to limit the negative effects of such crises. However, the anecdotal and empirical evidence from the three crises shows that such emergency liquidity assistance implies risks to goods price stability if it is not focused on the interbank market and quickly sterilised.
Subjects: 
Liquidity Crises
Financial Stability
Monetary Policy
JEL: 
E58
E44
G10
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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