a. What characterizes a fragile market? b. What defines a resilient or robust market? c. Market spreads
Question:
a. What characterizes a “fragile market”?
b. What defines a “resilient” or “robust” market?
c. Market spreads have declined considerably over the past 25 years. Why might much or at least part of this spread reduction be regarded as illusory (fake) or not really there?
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a Loss of liquidity when the market needs it most leads to market fragility b ...View the full answer
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