Global Liquidity - Issues for Surveillance
Policy Papers, March 12, 2014
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- Canonical URL
- Global Liquidity - Issues for Surveillance
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Bibliographic details
- Published: March 12, 2014
- Series: Policy Papers
Evidence of commonality in global financial conditions
- The paper presents evidence of commonality in global financial conditions.
- This commonality is used as the basis for further analysis of drivers and transmission mechanisms.
Transmission channels
- Global financial conditions are related to specific drivers through a range of transmission channels, including:
- Cross-border banking
- Portfolio flows
Empirical findings on drivers of flows
- Empirical analysis identifies a range of price and quantity factors that help drive cross-border flows:
- Measures of risk
- Bank leverage
- Interest rates in financial centers
Role of country-specific policies
- Country-specific policies affect the transmission of global conditions. Policies highlighted include:
- Exchange rate frameworks
- Prudential frameworks
Remaining unknowns and risks going forward
- The paper emphasizes areas where much remains unknown, including:
- How evolving structures of global funding affect the mechanics of liquidity creation
- How changing institutions affect the channels of liquidity transmission
- How ongoing financial innovations affect potential risks going forward
Subject coverage
- Asset management
- Developed countries
- Emerging markets
- International financial system
- Liquidity
- Monetary policy
- Surveillance
Global Liquidity - Issues for Surveillance, March 12, 2014 (USA: International Monetary Fund, 0) accessed 9/18/2026
Content in this bundle
- Global Liquidity—Issues for Surveillance; IMF Policy Paper; March 11, 2014