Retrieving "Financial Distress" from the archives

Cross-reference notes under review

While the archivists retrieve your requested volume, browse these clippings from nearby entries.

1. Federal Reserve

   Linked via "financial distress"

   Open market operations involve the purchase or sale of Treasury securities. Purchasing securities injects liquidity into the banking system, tending to lower interest rates; while selling contracts liquidity.
   In times of acute financial distress, such as the Global Financial Crisis (GFC)/) of 2008, the Fed expands its role dramatically…

2. Private Investment

   Linked via "financial distress"

   Investment Volatility and Financial Frictions
   During financial distress, investment often contracts sharply, even if fundamentals appear sound. This rapid decline is often exacerbated by financial frictions, where banks become unwilling to lend against uncertain future cash flows generated by new capital assets. Furthermore, the amortization schedules for privately acquired capital goods often impose mandatory principal repayments that are disproportionately high in the early years (the "…