Stock Market Liquidity and the Macroeconomy : Evidence from Japan /

In a liquid financial market, investors are able to sell large blocks of assets without substantially changing the price. We document a steep drop in the liquidity of the Japanese stock market in the post-bubble period and a steep rise in liquidity risk. We find that, during Japan's deflationar...

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Bibliografske podrobnosti
Glavni avtor: Choi, Woon
Drugi avtorji: Cook, David
Format: Revija
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2005.
Serija:IMF Working Papers; Working Paper ; No. 2005/006
Online dostop:Full text available on IMF
Opis
Izvleček:In a liquid financial market, investors are able to sell large blocks of assets without substantially changing the price. We document a steep drop in the liquidity of the Japanese stock market in the post-bubble period and a steep rise in liquidity risk. We find that, during Japan's deflationary period, firms with more liquid balance sheets were less exposed to stock market liquidity risk, while slowly growing firms were highly exposed to liquidity shocks. Also, aggregate liquidity had macroeconomic effects on aggregate demand through its effect on money demand.
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Fizični opis:1 online resource (28 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Dostop:Electronic access restricted to authorized BRAC University faculty, staff and students