{
  "title": "Exploring the Dynamics of Global Liquidity",
  "publication": "IMF Working Papers, October 11, 2012",
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  "summary": "This paper explores the concept of global liquidity, its measurement and macro-financial importance. We construct two sets of indicators for global liquidity: a quantity series distinguishing between core and noncore liabilities of financial intermediatires and a corresponding price series.",
  "sections": [
    {
      "heading": "Summary & Objectives",
      "content": "- Explores the concept of global liquidity, its measurement and macro-financial importance.\n- Constructs two sets of indicators for global liquidity:\n  - a quantity series distinguishing between core and noncore liabilities of financial intermediaries\n  - a corresponding price series\n- Uses price and quantity indicators simultaneously to distinguish between shocks to the supply and demand for global liquidity and to isolate their impact on the economy."
    },
    {
      "heading": "Measurement and Methodology",
      "content": "- Two complementary indicator sets:\n  - Quantity indicators: distinguish between core and noncore liabilities of financial intermediaries.\n  - Price indicators: a corresponding price series aligned with the quantity indicators.\n- Joint use of price and quantity indicators permits:\n  - identification of supply shocks to global liquidity\n  - identification of demand shocks to global liquidity\n  - isolation of the impacts of these shocks on economic and financial outcomes"
    },
    {
      "heading": "Key Findings",
      "content": "- Confirms that global liquidity conditions matter for economic and financial stability.\n- Highlights indicators whose regular monitoring could be valuable to policymakers.\n- Emphasizes the distinction between core and noncore financial liabilities in assessing global liquidity dynamics."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Regular monitoring of the constructed price and quantity indicators is valuable for policymakers to detect and differentiate supply and demand shocks to global liquidity.\n- Monitoring should pay particular attention to:\n  - core liquidity measures\n  - noncore liquidity quantity aggregates\n  - price-index movements that, when combined with quantity indicators, reveal supply versus demand dynamics"
    },
    {
      "heading": "Contextual Notes, Subjects, and Keywords",
      "content": "- Subjects listed: Asset and liability management; Economic theory; Financial crises; Financial statements; Global financial crisis of 2008-2009; International liquidity; Liquidity; Public financial management (PFM); Supply shocks\n- Keywords include: core and noncore financial liabilities, core liquidity, core liquidity supply shock post crisis t-1, demand and supply, demand and supply shock, demand shock post crisis t-1, Financial statements, Global, Global financial crisis of 2008-2009, growth, International liquidity, Liquidity, liquidity creation, liquidity demand shock post crisis t-1, liquidity shock, Noncore liquidity quantity aggregate, post crisis, price index, quantity aggregate, real GDP, shadow banking, supply and demand demand shock, Supply shocks, WP\n\nSource: Exploring the Dynamics of Global Liquidity, IMF Working Paper (October 11, 2012).\n\n---\n\n Content in this bundle\n\n- wp12246\n  - wp12246 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp12246 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/exploring-the-dynamics-of-global-liquidity-40045"
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    "Authors: Sally Chen, Philip Liu, Andrea M. Maechler, Chris Marsh, Sergejs Saksonovs, Hyun S Shin",
    "Published: October 11, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475512793.001",
    "Explores the concept of global liquidity, its measurement and macro-financial importance.",
    "Constructs two sets of indicators for global liquidity:",
    "Uses price and quantity indicators simultaneously to distinguish between shocks to the supply and demand for global liquidity and to isolate their impact on the economy.",
    "Two complementary indicator sets:",
    "Joint use of price and quantity indicators permits:",
    "Confirms that global liquidity conditions matter for economic and financial stability.",
    "Highlights indicators whose regular monitoring could be valuable to policymakers.",
    "Emphasizes the distinction between core and noncore financial liabilities in assessing global liquidity dynamics.",
    "Regular monitoring of the constructed price and quantity indicators is valuable for policymakers to detect and differentiate supply and demand shocks to global liquidity.",
    "Monitoring should pay particular attention to:",
    "Subjects listed: Asset and liability management; Economic theory; Financial crises; Financial statements; Global financial crisis of 2008-2009; International liquidity; Liquidity; Public financial management (PFM); Supply shocks",
    "Keywords include: core and noncore financial liabilities, core liquidity, core liquidity supply shock post crisis t-1, demand and supply, demand and supply shock, demand shock post crisis t-1, Financial statements, Global, Global financial crisis of 2008-2009, growth, International liquidity, Liquidity, liquidity creation, liquidity demand shock post crisis t-1, liquidity shock, Noncore liquidity quantity aggregate, post crisis, price index, quantity aggregate, real GDP, shadow banking, supply and demand demand shock, Supply shocks, WP",
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