Haircuts

Gary Gorton and Andrew Metrick

Review, 2010, vol. 92, issue Nov, 507-520

Abstract: ?When confidence is lost, liquidity dries up.? The authors investigate the meaning of ?confidence? and ?liquidity? in the context of the recent financial crisis, which they maintain is a manifestation of an age-old problem with private money creation: banking panics. The authors explain this problem and provide some evidence with respect to the recent crisis.

Keywords: Financial crises; Bank liquidity (search for similar items in EconPapers)
Date: 2010
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Related works:
Working Paper: Haircuts (2009)
Working Paper: Haircuts (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:y:2010:i:nov:p:507-520:n:v.92no.6

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