The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
Regional & Community Outreach connects the Bank to Main Street via structured dialogues and two-way conversations on small business, mortgages, and household credit.
Economic Education improves public knowledge about the Federal Reserve System, monetary policy implementation, and promoting financial stability through the Museum and programs for K-16 students and educators, and the community.
A conference jointly sponsored by the Federal Reserve Bank of New York and the Bendheim Center for Finance of Princeton University. Overview Liquidity is essential for the working of financial markets but can dry up periodically, posing the risk of a financial crisis. To avoid a crisis, a comprehensive understanding of the forces that affect liquidity is needed.
There are multiple facets to liquidity. The macroeconomic, corporate finance, and banking literatures approach liquidity as ease of accessing funds (“funding liquidity”), while researchers specializing in market microstructure focus on the ease of trading assets (“market liquidity”).
This conference aims to bridge the gap between different liquidity concepts and to stimulate an exchange among researchers working on different aspects of liquidity. To highlight the practical relevance of the papers, a practitioner or regulator as well as an academic will discuss each paper.