EconPapers    
Economics at your fingertips  
 

What is global excess liquidity, and does it matter?

Rasmus Rüffer and Livio Stracca

No 696, Working Paper Series from European Central Bank

Abstract: This paper endeavours to provide a comprehensive analysis of the nature and the possible importance of "global excess liquidity", a concept which has attracted considerable attention in recent years. The contribution of this paper is threefold. First, we present some conceptual discussion on the meaning of excess liquidity in advanced countries with developed financial markets. Second, we report some descriptive analysis on the degree of co-movement of several possible measures of excess liquidity and spill-overs between them for a relatively large sample of industrialised and developing countries. Third, we estimate a VAR model for an aggregate of the major industrialised countries and analyse the transmission of shocks to global excess liquidity to the global economy, including possible cross-border spill-over effects to a number of domestic variables in the world's three largest economies (the US, the euro area and Japan). JEL Classification: E52, F42

Keywords: Global excess liquidity; international economics.; monetary policy; open economy (search for similar items in EconPapers)
Date: 2006-11
Note: 343104
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (100)

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp696.pdf (application/pdf)

Related works:
Working Paper: What is global excess liquidity, and does it matter? (2007) Downloads
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:ecb:ecbwps:2006696

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().

 
Page updated 2025-03-24
Handle: RePEc:ecb:ecbwps:2006696