01645cas a2200253 a 4500 AALejournalIMF008739 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860252 1018-5941 BD-DhAAL BD-DhAAL Choi, Woon. Stock Market Liquidity and the Macroeconomy : Evidence from Japan / Woon Choi, David Cook. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In a liquid financial market, investors are able to sell large blocks of assets without substantially changing the price. We document a steep drop in the liquidity of the Japanese stock market in the post-bubble period and a steep rise in liquidity risk. We find that, during Japan's deflationary period, firms with more liquid balance sheets were less exposed to stock market liquidity risk, while slowly growing firms were highly exposed to liquidity shocks. Also, aggregate liquidity had macroeconomic effects on aggregate demand through its effect on money demand. Mode of access: Internet Cook, David. IMF Working Papers; Working Paper ; No. 2005/006 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/006/001.2005.issue-006-en.xml IMF e-Library