Inside and Outside Liquidity - Brossura

Holmstrom, Bengt; Tirole, Jean

Brossura

ISBN 10: 0262518538 ISBN 13: 9780262518536

Casa editrice: The MIT Press, 2013

Riassunto

Two leading economists develop a theory explaining the demand for and supply of liquid assets.

Why do financial institutions, industrial companies, and households hold low-yielding money balances, Treasury bills, and other liquid assets? When and to what extent can the state and international financial markets make up for a shortage of liquid assets, allowing agents to save and share risk more effectively? These questions are at the center of all financial crises, including the current global one.

In Inside and Outside Liquidity, leading economists Bengt Holmström and Jean Tirole offer an original, unified perspective on these questions. In a slight, but important, departure from the standard theory of finance, they show how imperfect pledgeability of corporate income leads to a demand for as well as a shortage of liquidity with interesting implications for the pricing of assets, investment decisions, and liquidity management. The government has an active role to play in improving risk-sharing between consumers with limited commitment power and firms dealing with the high costs of potential liquidity shortages. In this perspective, private risk-sharing is always imperfect and may lead to financial crises that can be alleviated through government interventions.

Su questo libro

L'autore:

Bengt Holmström is Paul A. Samuelson Professor of Economics at MIT, where he was Head of the Economics Department from 2003 to 2006. Jean Tirole is Scientific Director of IDEI (Institut d'Economie Industrielle), Chairman of the Board of TSE (Toulouse School of Economics), and Annual Visiting Professor of Economics at MIT.

Su questa edizione

• Editore: The MIT Press
• Data di pubblicazione: 2013
• ISBN 10: 0262518538
• ISBN 13: 9780262518536
• Rilegatura: Copertina flessibile
• Numero di pagine: 262