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Annual Review of Economics

Volume 9, 2017

Global Liquidity: A Selective Review

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.

Keyword(s): capital flows, international currencies, international finance, leverage
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/content/journals/10.1146/annurev-economics-063016-104331
2017-08-02
2024-04-19
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/content/journals/10.1146/annurev-economics-063016-104331
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Global Liquidity: A Selective Review
Annual Review of Economics 9, 587 (2017); https://doi.org/10.1146/annurev-economics-063016-104331
/content/journals/10.1146/annurev-economics-063016-104331
/content/journals/10.1146/annurev-economics-063016-104331
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