Global Liquidity through the Lens of Monetary Aggregates

 
Author/Editor: Kyuil Chung ; Jong-Eun Lee ; Elena Loukoianova ; Hail Park ; Hyun Song Shin
 
Publication Date: January 24, 2014
 
Electronic Access: Free Full text (PDF file size is 760KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper examines how the financial activities of non-financial corporates (NFCs) in international markets potentially affects domestic monetary aggregates and financial conditions. Monetary aggregates reflect, in part, the activities of NFCs, who channel capital market financing into the domestic banking system, thereby influencing funding conditions and credit availability. Periods of capital inflows are also those when the domestic currency is appreciating, and such periods of rapid exchange rate appreciation coincide with increases in the central bank’s foreign exchange reserves, increasing the stock of narrow money. The paper examines economic significance of cross-country panel data on monetary aggregates and other measures of non-core bank liabilities. Non-core liabilities that reflect the activities of NFCs reflect broad credit conditions and predict global trade and growth.
 
Series: Working Paper No. 14/9
Subject(s): Monetary aggregates | Corporate sector | International capital markets | Capital inflows | Liquidity | Exchange rate appreciation | Banking sector

 
English
Publication Date: January 24, 2014
ISBN/ISSN: 9781475514551/1018-5941 Format: Paper
Stock No: WPIEA2014009 Pages: 49
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
Please address any questions about this title to publications@imf.org