Why would haircuts on collateral increase sharply during a financial crisis? How would this lead to fire

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Why would haircuts on collateral increase sharply during a financial crisis? How would this lead to fire sales on assets?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0133836790

11th edition

Authors: Frederic S. Mishkin

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Question Posted: Nov 03, 2017 04:00 AM

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Why would haircuts on collateral increase sharply during a financial crisis? How would this lead to fire

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During a financial crisis asset prices fall oftentimes very rapidly and ...View the full answer

The Economics of Money Banking and Financial Markets

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