Global Liquidity: Drivers, Volatility and Toolkits

Linda Goldberg

No 31355, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Global liquidity refers to the volumes of financial flows – largely intermediated through global banks and non-bank financial institutions – that can move at relatively high frequencies across borders. The amplitude of responses to global conditions like risk sentiment, discussed in the context of the global financial cycle, depends on the characteristics and vulnerabilities of the institutions providing funding flows. Evidence from across empirical approaches and using granular data provides policy-relevant lessons. International spillovers of monetary policy and risk sentiment through global liquidity evolve in response to regulation, the characteristics of financial institutions, and actions of official institutions around liquidity provision. Strong prudential policies in the home countries of global banks and official facilities reduce funding strains during stress events. Country-specific policy challenges, summarized by the monetary and financial trilemmas, are partially alleviated. However, risk migration across types of financial intermediaries underscores the importance of advancing regulatory agendas related to non-bank financial institutions.

JEL-codes: E44 F30 F36 F38 F40 G15 G18 G23 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mon and nep-opm
Note: IFM
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published as Linda S. Goldberg, 2024. "Global Liquidity: Drivers, Volatility and Toolkits," IMF Economic Review, vol 72(1), pages 1-31.

Downloads: (external link)
http://www.nber.org/papers/w31355.pdf (application/pdf)

Related works:
Journal Article: Global Liquidity: Drivers, Volatility and Toolkits (2024)
Working Paper: Global Liquidity: Drivers, Volatility and Toolkits (2023)
Working Paper: Global Liquidity: Drivers, Volatility and Toolkits (2023)
Working Paper: Global Liquidity: Drivers, Volatility and Toolkits (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:31355

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w31355

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().