Turnover Liquidity and the Transmission of Monetary Policy
124 Pages Posted: 2 May 2016 Last revised: 27 Oct 2019
Date Written: September 1, 2018
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: Asset prices; Liquidity; Monetary policy; Monetary transmission
JEL Classification: D83, E52, G12
Suggested Citation: Suggested Citation