Global Liquidity: A Selective Review

Posted: 14 Aug 2017

See all articles by Benjamin H. Cohen

Benjamin H. Cohen

Bank for International Settlements (BIS)

Dietrich Domanski

Bank for International Settlements (BIS)

Ingo Fender

Bank for International Settlements (BIS)

Hyun Song Shin

Bank for International Settlements (BIS)

Date Written: August 2017

Abstract

Global liquidity is a catch-all term that is used to denote the combination of easier financing conditions, capital inflows, and exchange rate appreciation. An approach based on the activities of internationally active financial institutions sheds light on the conceptual underpinnings and the economic mechanisms involved in the transmission of global liquidity. The analysis highlights the role of international funding currencies, especially the US dollar. The analysis also motivates a set of global liquidity indicators based on the size and currency composition of balance sheets.

Suggested Citation

Cohen, Benjamin H. and Domanski, Dietrich and Fender, Ingo and Shin, Hyun Song, Global Liquidity: A Selective Review (August 2017). Annual Review of Economics, Vol. 9, pp. 587-612, 2017. Available at SSRN: https://ssrn.com/abstract=3017737 or http://dx.doi.org/10.1146/annurev-economics-063016-104331

Benjamin H. Cohen (Contact Author)

Bank for International Settlements (BIS) ( email )

Basel
Switzerland

Dietrich Domanski

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Ingo Fender

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

HOME PAGE: http://www.bis.org

Hyun Song Shin

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

HOME PAGE: http://www.bis.org/author/hyun_song_shin.htm

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