*We thank Sir John Gieve and two anonymous referees for helpful comments.
Financial Market Liquidity and the Financial Crisis: An Assessment Using UK Data*
Article first published online: 22 DEC 2010
© 2010 Blackwell Publishing Ltd
Volume 13, Issue 3, pages 443–459, Winter 2010
How to Cite
Martin, C. and Milas, C. (2010), Financial Market Liquidity and the Financial Crisis: An Assessment Using UK Data. International Finance, 13: 443–459. doi: 10.1111/j.1468-2362.2010.01269.x
- Issue published online: 22 DEC 2010
- Article first published online: 22 DEC 2010
A steady increase in financial market liquidity followed by a rapid reduction played a central role in the financial crisis that began in 2007. We present empirical evidence that the marked rise in liquidity in 2001–07 was due to large and persistent current account deficits and loose monetary policy.