Economics, Econometrics and Finance
4 years ago

Global Financial Crisis Avoided with New Bank Liquidity Regulations.

World Scientific Book Chapters
How Should Bank Liquidity be Regulated
Franklin Allen, Douglas Gale

Paper Summary

The financial crisis of 2007-2009 was severe due to a lack of liquidity in markets, causing investors to withdraw from financial institutions. To address this, central banks injected large amounts of liquidity into the financial system.

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