Understanding Global Liquidity

Econometric analysis forms the main body of this crisp, efficient academic paper about “global liquidity.” Economists Sandra Eickmeier, Leonardo Gambacorta and Boris Hofmann contend that three main factors contribute to global liquidity: “global monetary policy, global credit supply” and “global credit demand.” They identify patterns in the interrelationships among them over time, particularly in the run-up to and the aftermath of the 2008 crisis. Though not radical, their conclusions show how data-managing econometric techniques can support economic conclusions. getAbstract recommends their clear insights as aids in exploring the largely uncharted subject of global liquidity.