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Turnover Liquidity and the Transmission of Monetary Policy

Working Paper 734 | Published September 20, 2018

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Authors

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Shengxing Zhang

Turnover Liquidity and the Transmission of Monetary Policy

Abstract

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.


Published in _American Economic Review_, (vol. 110, no. 6, June 2020, pp.1635-1672), https://doi.org/10.1257/aer.20170045.