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.
![Bridge over ocean](/-/media/images/hero/rpc-theme-heros/bridge-default.jpg?w=2560&hash=C67CE44B69F875C23628FEF2E3F26808)