Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002

You Are Here: Home » Government Documents » BIS – Understanding Global Liquidity

BIS – Understanding Global Liquidity

by on

Understanding Global Liquidity, by Sandra Eickmeier, Leonardo Gambacorta and Boris Hofmann. Working Papers No 402, February 2013

  • “We explore the concept of global liquidity based on a factor model estimated using a large set of financial and macroeconomic variables from 24 advanced and emerging market economies. We measure global liquidity conditions based on the common global factors in the dynamics of liquidity indicators. By imposing theoretically motivated sign restrictions on factor loadings, we achieve a structural identification of the factors. The results suggest that global liquidity conditions are largely driven by three common factors and can therefore not be summarised by a single indicator. These three factors can be identified as global monetary policy, global credit supply and global credit demand.”
  • Related postings on financial system
    • LinkedIn

    Sorry, comments are closed for this post.