Liquidity and credit: government debt and financial arrangements as credit providers... The provided general equilibrium analysis bears the following main implications: firstly, it shows that security endogeneity is a crucial factor in the explanation of procyclical liquidity; secondly, there is a well defined notion of collateral, the liquidity of which is endogeously enhanced by the arrangements within financial markets; thirdly, it reinterprets government bonds, in their ability to provide liquid collateral, to encourage rather than crowd out private investment....
Lending-rate spreads, financial dollarization, and creditor protection... In the model, firms borrow in dollars but differ on whether they have dollar-liquid or peso-liquid collateral....
Credit granting to small firms: a brazilian case... Results suggest that small firms face credit rationing and that low risk credit contracts with liquid collateral are their primary source of credit....
Repo markets, counterparty risk and the 2007/2008... An en-dogenous opportunity cost arises from using liquid collateral with the central bank....
