Liquidity, Solvency and Bubbles in Financial Markets
March 19, 2009
Organizers
- Lars Peter Hansen, University of Chicago
- John Heaton, University of Chicago
This conference brought together leading scholars to explore the interplay between liquidity and solvency as they apply to financial markets and the consequences for the design of policy. Speakers presented liquidity-based models and empirical evidence that measured the importance of liquidity risk as reflected by financial market and macroeconomic data. In addition, the impact of alternative market structures, including exchange-based trading and over-the-counter trading for derivative securities, was investigated.
Program
Does a Central Clearing Counterparty Reduce Counterparty Risk?
- Darrell Duffie (Stanford University) and Haoxiang Zhu (Stanford University)
Illiquidity and Interest Rate Policy
- Douglas Diamond (University of Chicago) and Raghuram G. Rajan (University of Chicago)
Trend and Cycle in Bond Premia
- Monika Piazzesi (Stanford & NBER) and Martin Schneider (Stanford & NBER)