@article {Howell52, author = {Michael J Howell}, title = {Liquidity Risk}, volume = {2010}, number = {1}, pages = {52--63}, year = {2010}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article distinguishes between market liquidity and instrument liquidity. Important macro-factors (market liquidity) determine liquidity conditions in micro-markets (instrument liquidity). Capitalism is essentially a financing system, or more correctly a refinancing system. The refinancing process is largely controlled at the macro level by central banks via their influence on the wholesale money markets. Financial liquidity tends to move in a four-to-five-year global cycle. Periods of tight liquidity trigger financial crises like that of 2007-2008. The modern-day banking crisis no longer involves queues of retail depositors scrambling to remove their savings whenever their bank lacks reserves. Rather it is caused by asset-liability {\textquotedblleft}mismatch{\textquotedblright} and an inability to refinance short-term liabilities in the wholesale markets.}, issn = {978-0-9842550-3-0}, URL = {https://guides.pm-research.com/content/2010/1/52}, eprint = {https://guides.pm-research.com/content/2010/1/52.full.pdf}, journal = {Trading} }