Turnover Liquidity and the Transmission of Monetary Policy
Ricardo Lagos, Shengxing Zhang
American Economic Review · 2020 · Volume 110 · Issue 6
Abstract
We provide empirical evidence of a novel liquidity-based transmission mechanism through which monetary policy influences asset markets, develop a model of this mechanism, and assess the ability of the quantitative theory to match the evidence.
Keywords
Financial Markets and the Macroeconomy, Monetary Policy, Equities, Fixed Income Securities, Information and Market Efficiency, Event Studies, Insider Trading, Payout Policy
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