Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73404
Authors: 
Missio, Sebastian
Year of Publication: 
2011
Series/Report no.: 
BGPE Discussion Paper 103
Abstract: 
The paper analyses problems arising from the interdependence of liquidity provision in the financial system. Findings document, that liquidity shortage of minor financial players can translate into liquidity shortage for systemic relevant players, thereby putting the proper functioning of the overall financial system on the line. As contractual mechanisms to safeguard against this threat are absent in the wake of market frictions, prudent regulation and governmental provision of external liquidity is asked for in order to solve these problems.
Subjects: 
Illiquidity
Insolvency
Contagion
JEL: 
G01
G21
Document Type: 
Working Paper

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