Download the fantastic book titled Inside and Outside Liquidity written by Bengt Holmstrom, available in its entirety in both PDF and EPUB formats for online reading. This page includes a concise summary, a preview of the book cover, and detailed information about "Inside and Outside Liquidity", which was released on 11 January 2013. We suggest perusing the summary before initiating your download. This book is a top selection for enthusiasts of the Business & Economics genre.
Summary of Inside and Outside Liquidity by Bengt Holmstrom PDF
Two leading economists develop a theory explaining the demand for and supply of liquid assets. Why do financial institutions, industrial companies, and households hold low-yielding money balances, Treasury bills, and other liquid assets? When and to what extent can the state and international financial markets make up for a shortage of liquid assets, allowing agents to save and share risk more effectively? These questions are at the center of all financial crises, including the current global one. In Inside and Outside Liquidity, leading economists Bengt Holmström and Jean Tirole offer an original, unified perspective on these questions. In a slight, but important, departure from the standard theory of finance, they show how imperfect pledgeability of corporate income leads to a demand for as well as a shortage of liquidity with interesting implications for the pricing of assets, investment decisions, and liquidity management. The government has an active role to play in improving risk-sharing between consumers with limited commitment power and firms dealing with the high costs of potential liquidity shortages. In this perspective, private risk-sharing is always imperfect and may lead to financial crises that can be alleviated through government interventions.
Detail About Inside and Outside Liquidity PDF
- Author : Bengt Holmstrom
- Publisher : MIT Press
- Genre : Business & Economics
- Total Pages : 263 pages
- ISBN : 0262518538
- Release Date : 11 January 2013
- PDF File Size : 11,7 Mb
- Language : English
- Rating : 4/5 from 21 reviews
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