The Effects of Global Liquidity on Global Imbalances

Marie-Louise Djigbenou and Hail Park
Additional contact information
Marie-Louise Djigbenou: Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux

Post-Print from HAL

Abstract: This paper examines how global liquidity responds to a US (United States) monetary policy shock, and whether global liquidity has effects on global imbalances. To this end we estimate regression and Panel-VARX models using data from the G5 (US, United Kingdom, Euro area, Japan and Canada) and 20 emerging countries. The empirical results show that global liquidity is meaningfully affected by a US monetary shock, and that the effects on global imbalances of global liquidity are significant. The foreign exchange reserves of emerging economies are also found to play a significant role related to global imbalances.

Keywords: Global liquidity; Global imbalances; Panel-VARX; US monetary shock; Spillover effect (search for similar items in EconPapers)
Date: 2016-03
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in International Review of Economics & Finance, 2016, 42, pp.1-12. ⟨10.1016/j.iref.2015.10.019⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:hal:journl:hal-03897233

DOI: 10.1016/j.iref.2015.10.019

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().