I review the recent literature that applies search-and-matching theory to the study of over-the-
counter financial markets. I formulate and solve a simple model to illustrate the typical …

We examine the optimal design of and interaction between capital and liquidity regulations.
Banks, not internalizing fire sale externalities, overinvest in risky assets and underinvest in …

When and how does sustainable finance contribute to a better world? In this paper, we
outline the mechanisms through which impact is transmitted from the financial system to the …

We develop a business cycle model where endogenous firm creation stems from two credit
market frictions. First, entrepreneurs search for a lending relationship with a bank. Second …

We study asset liquidity in a model where financial assets can be liquidated for money in
over-the-counter (OTC) secondary markets, in response to random liquidity needs. Traders …

We study how the strategic interaction of liquid-asset suppliers depends on the financial
market conditions that determine asset liquidity. In our model, two asset suppliers try to profit …

We model asset issuance in over-the-counter markets. Investors buy newly issued assets in
a primary market and trade existing assets in a secondary market, where trade in both …

Trading frictions in financial markets affect more long-term than short-term bonds, generating
an upward-slo** yield curve. Long-term financing is more expensive in economies with …

When and how does sustainable finance tangibly contribute to creating a better world? In
this paper, we outline mechanisms through which impact on sustainability outcomes is …

ABSTRACT We use the Federal Reserve's Secondary Market Corporate Credit Facility
(SMCCF) to examine whether secondary market liquidity has real economic effects. In …