Published Journal of Money, Credit and Banking Online 12 Sep 2025 Published Aug 2026Liquidity Crises and the Market-Maker of Last ResortCharles M. Kahn · David Marshall · Robert L. McDonaldThis paper develops a theoretical model to explain why financial markets can suffer self-fulfilling liquidity crises and how a central bank acting as a "market-maker of last resort" (MMLR) can …