Preference for Liquidity in Markets with Borrowing Restri...
Mierzejewski, Fernando
The global crises suffered by major economies in the last decade have persuaded people that capital markets can be intrinsically unstable after all. However, this is a fact that enters in contradiction with major theorems of classic financial economics theory, which assume that individuals can always borrow funds at a predetermined price. An alternative theoretical setting is proposed in this book that explicitly incorporates the presence of l...