Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Research Department, issuing body.
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| ISBN: | 1283561441
9781283561440
9781462376841
1462376843
9781455264452
1455264458
1455276502
9781455276509
9786613873897
6613873896
1455266450
9781455266456
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| Notes: | Includes bibliographical references.
English.
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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. This distinction between safe and risky asset markets is important due to market segmentation, which called for unconventional monetary policy to restore a function of risky asset markets. To analyze the effect of global liquidity, I construct proxy variables and then asses how they affect an emerging economy whose interest rate is affected by a world risk-free rate and a risk premium. Using the data from four major Latin American countries, I find that these two aspects of global liquidity have similar effects on economic performance in emerging market economies except for their effect on inflation.
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| Other form: | Print version: Matsumoto, Akito. Global Liquidity: Availability of Funds for Safe and Risky Assets. Washington : International Monetary Fund, ©2011 9781455264452
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