Assessing Global Liquidity
15 Pages Posted: 7 Sep 2012
Date Written: December 12, 2011
Global liquidity has become a key focus of international policy debates, yet the term continues to be used in a variety of ways. This lack of precision can lead to potentially undesirable policy responses. In this feature, we attempt to clarify the concept of global liquidity, its measurement and policy implications. We argue that policy responses to global liquidity call for a consistent framework that takes into account all phases of global liquidity cycles, countering both surges and shortages.
JEL Classification: E50, F30, G15
Suggested Citation: Suggested Citation