The recent turmoil in financial markets has attracted a lot of attention and aroused new interest in monetary policy. I have set up the following special website in order to provide background and helpful links to get a better grasp of recent events.
Paper by Jin Cao and Gerhard Illing (2008) on Endogenous Systemic Liquidity Risk
Paper by Jin Cao and Gerhard Illing (2008) on Liquidity Shortages and Monetary Policy
