{
  "title": "Global Liquidity: Availability of Funds for Safe and Risky Assets",
  "publication": "IMF Working Papers, June 1, 2011",
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  "summary": "What is global liquidity and how does it affect an economy? The paper addresses that question by looking at liquidity from two different perspectives: global liquidity as availability of funds in safe and risky asset markets.",
  "sections": [
    {
      "heading": "Overview and research question",
      "content": "- Title: Global Liquidity: Availability of Funds for Safe and Risky Assets\n- Author: Akito Matsumoto\n- Date: June 1, 2011\n- Publication: IMF Working Papers, Working Paper No. 2011/136\n- Pages: 36\n- Volume: 2011\n- Issue: 136\n- DOI: https://doi.org/10.5089/9781455264452.001\n- Stock No: WPIEA2011136\n- ISBN: 9781455264452\n- ISSN: 1018-5941\n- Core question: What is global liquidity and how does it affect an economy?"
    },
    {
      "heading": "Conceptual framing",
      "content": "- Two perspectives on global liquidity:\n  - Global liquidity as availability of funds in safe asset markets.\n  - Global liquidity as availability of funds in risky asset markets.\n- Rationale for the distinction:\n  - Market segmentation between safe and risky asset markets.\n  - Market segmentation motivated the use of unconventional monetary policy to restore a function of risky asset markets.\n- Analytical setup:\n  - Construct proxy variables for the two aspects of global liquidity.\n  - Assess how these proxies affect an emerging economy whose interest rate is affected by a world risk-free rate and a risk premium."
    },
    {
      "heading": "Data and empirical scope",
      "content": "- Empirical sample: data from four major Latin American countries (countries not named in the overview).\n- Methods: proxy-variable construction and assessment of effects on an emerging economy model influenced by world risk-free rate and a risk premium."
    },
    {
      "heading": "Key findings",
      "content": "- The two aspects of global liquidity (safe-asset funding and risky-asset funding) have similar effects on economic performance in emerging market economies.\n- Exception: the two aspects differ in their effect on inflation."
    },
    {
      "heading": "Policy-relevant observations",
      "content": "- Market segmentation can justify unconventional monetary policy aimed at risky asset markets to restore market functioning.\n- Understanding separate channels of global liquidity (safe vs risky) is important for assessing impacts on emerging market macroeconomic outcomes, including inflation dynamics.\n\nSource: IMF Working Papers — Global Liquidity: Availability of Funds for Safe and Risky Assets, Akito Matsumoto, June 1, 2011.\n\n---\n\n Content in this bundle\n\n- wp11136\n  - wp11136 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp11136 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/global-liquidity-availability-of-funds-for-safe-and-risky-assets-24913"
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    "Authors: Akito Matsumoto",
    "Published: June 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455264452.001",
    "Title: Global Liquidity: Availability of Funds for Safe and Risky Assets",
    "Author: Akito Matsumoto",
    "Date: June 1, 2011",
    "Publication: IMF Working Papers, Working Paper No. 2011/136",
    "Pages: 36",
    "Volume: 2011",
    "Issue: 136",
    "DOI: https://doi.org/10.5089/9781455264452.001",
    "Stock No: WPIEA2011136",
    "ISBN: 9781455264452",
    "ISSN: 1018-5941",
    "Core question: What is global liquidity and how does it affect an economy?",
    "Two perspectives on global liquidity:",
    "Rationale for the distinction:",
    "Analytical setup:",
    "Empirical sample: data from four major Latin American countries (countries not named in the overview).",
    "Methods: proxy-variable construction and assessment of effects on an emerging economy model influenced by world risk-free rate and a risk premium.",
    "The two aspects of global liquidity (safe-asset funding and risky-asset funding) have similar effects on economic performance in emerging market economies.",
    "Exception: the two aspects differ in their effect on inflation.",
    "Market segmentation can justify unconventional monetary policy aimed at risky asset markets to restore market functioning.",
    "Understanding separate channels of global liquidity (safe vs risky) is important for assessing impacts on emerging market macroeconomic outcomes, including inflation dynamics.",
    "**_wp11136**"
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