Three Liquid Assets
Nicola Amendola,
Lorenzo Carbonari and
Leo Ferraris ()
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Leo Ferraris: Università di Milano-Bicocca
No 516, CEIS Research Paper from Tor Vergata University, CEIS
Abstract:
We examine a theoretical model of liquidity with three assets {money, government bonds and equity- that are used for transaction purposes. Money and bonds complement each other in the payment system. The liquidity of equity is derived as an equilibrium outcome. Liquidity cycles arise from the loss of confidence of the traders in the liquidity of the system. Both open market operations and credit easing play a beneficial role for different purposes.
Keywords: Money; Bonds; Equity; Liquidity; Credit Easing. (search for similar items in EconPapers)
JEL-codes: E40 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2021-10-14, Revised 2021-10-14
New Economics Papers: this item is included in nep-ban, nep-dge, nep-fdg, nep-mac and nep-mon
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Journal Article: Three liquid assets (2024) 
Working Paper: Three Liquid Assets (2021) 
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Persistent link: https://EconPapers.repec.org/RePEc:rtv:ceisrp:516
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