This essay surveys the new monetarist approach to liquidity. Work in this literature strives for
empirical and policy relevance, plus rigorous foundations. Questions include: What is …

Drawing on firm-level expectations at a one-year forecast horizon in the Survey of Business
Uncertainty (SBU), we construct novel, forward-looking reallocation measures for jobs and …

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 …

This paper investigates how dealers' trading relations shape their trading behavior in the
corporate bond market. Dealers charge lower spreads to dealers with whom they have the …

We develop a tractable model of banks' liquidity management with an over‐the‐counter
interbank market to study the credit channel of monetary policy. Deposits circulate randomly …

This paper studies the interaction between default and liquidity for corporate bonds that are
traded in an over‐the‐counter secondary market with search frictions. Bargaining with …

Dealers in the over‐the‐counter municipal bond market form trading networks with other
dealers to mitigate search frictions. Regulatory data show that this network has a core …

We show that the likelihood of a liquidity crunch in wholesale US dollar funding markets
depends on levels of reserve balances at the financial institutions that are the most active …

Most assets are traded in multiple interconnected trading venues. This paper develops an
equilibrium model of decentralized markets that accommodates general market structures …

I study a model of the financial sector in which intermediation among debt-financed banks
gives rise to an endogenous core-periphery network. Endogenous intermediation generates …