Turnover Liquidity and the Transmission of Monetary Policy

Lagos is thankful for the support from the C.V. Starr Center for Applied Economics at NYU, and for the hospitality of Princeton University, University College London, the University of Minnesota, and the Federal Reserve Bank of Minneapolis. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. Zhang is thankful for the support from the Centre for Macroeconomics at LSE, the British Academy/Leverhulme Small Research Grant, and for the hospitality of the University of Pennsylvania and New York Fed. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System.

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