Illiquidity and other financial frictions are critical to financial markets and the overall economy. This literature review provides a synopsis of academic research in this rapidly developing specialty field.
Illiquidity and other financial frictions are critical to financial markets and the overall economy. This literature review provides a synopsis of academic research in this rapidly developing specialty field, offering insights into liquidity and asset pricing, systemic risk, macro frictions, and new models of the causes of a liquidity crisis.