ERC Starting Grant · 2023
Over the past 15 years, the euro area experienced two large financial crises (global financial; debt crisis), and two non-financial crises (Covid, war/energy) with spillovers to the financial system. Curiously, all these crises involved distress in markets for assets which were supposedly liquid and safe: for example, repos and MBS in 2008, and sovereign bonds in the 2010 euro-area and October 2022 UK crises. But even though liquidity and safety play a key role in theories and narrative accounts of crises, most empirical studies of crises focus on risk, creating a key gap in the literature. My proposal will fill this gap by conducting the first systematic study of the role market liquidity…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.