Amplification Mechanisms in Liquidity Crises

By Arvind Krishnamurthy. 2009

265 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/9d96c4cf6f0f9e6d3c22d65b5a0d7266f6590307

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Citations in the corpus

Psychology-based Models of Asset Prices and Trading Volume (2018, background): “Ambiguity aversion may also amplify financial crises (Krishnamurthy, 2010).”
Limits of Arbitrage (2010, unknown): “In He & Krish- namurthy (2008; 2009), the capital available to fund managers cannot exceed a fixed multiple of their personal wealth—a constraint derived from optimal contracting under moral hazard.”
Has the U.S. Finance Industry Become Less Efficient? on the Theory and Measurement of Financial Intermediation (2015, unknown): “For the 6See for instance Adrian and Shin (2008), Reinhart and Rogoff (2009), Krishnamurthy (2009), Acharya et al. (2009), and Scharfstein and Sunderam (2011) for recent discussions of these issues. post-war period, the two measures display the same trends.”
Systemic Risk in Financial Networks: A Survey (2020, unknown): “This appears in the investment model of Krishnamurthy (2010), where multiple equilibria can coexist and exhibit various degrees of liquidation and price levels.”
Systemic Risk and Stability in Financial Networks (2015, background): “Rather, in the presence of large shocks, financial networks in which banks are only weakly connected to one another are less prone to systemic failures.”
Strategic Complementarity, Fragility, and Regulation (2014, methodology): “Liu and Mello (2011) explain how the fragile capital structure of hedge funds, which is due to a coordination problem in redemptions, limits their arbitrage capabilities.”
Pecuniary Externalities in Economies with Financial Frictions (2016, unknown): “See Krishnamurthy (2010), Shleifer and Vishny (2011), and Brunnermeier and Oehmke (2013) for recent surveys.”
Fire‐Sale Spillovers and Systemic Risk (2015, unknown): “If banks expect that markets will become more illiquid in the future, the liquidity premium should be smaller today than tomorrow, creating an incentive to hold on to liquidity until it is more valuable (Brown et al., 2009; Krishnamurthy, 2010).”
How Safe are Money Market Funds (2013, background): “An excellent summary of the main ideas offers Krishnamurthy (2010).”