A Primer on 'Global Liquidity

AuthorEugenio Cerutti - Stijn Claessens - Lev Ratnovski
Pages1-4
IMFIMF
Volume 15, Number 3 September 2014
www.imf.org/researchbulletin
B U L L E T I N
1
A Primer on “Global Liquidity”
Eugenio Cerutti, Stijn Claessens, and Lev Ratnovski
“Global liquidity” is often
used to describe the imp act of
low U.S. and euro area inter-
est rates on the rest of the
world. The concept is c ritical
for understanding the global
financial cycle and inter national spillovers. This column defin es global liquidity
as the ease of financ ing in cross-border markets and points to its potential drivers.
To limit their exposures to global liquidity f luctuations nations can embrace bet-
ter macro policy framework s, consider capital flow manage ment tools, and more
stringently regulate and super vise banks.
e nancial cycle is be coming increasingly global, as hig hlighted in recent
work (Rey 2013, Bruno and Shin 2014, Obstfeld 2014) and reected in policy
discussions (e.g., the increased ta lk of nancial “spillovers”). e phenomenon is
Letter from the (New) Editor
Fourteen years ago, in June 20 00, the rst issue of the IMF
Research Bulletin was published! It has been a great and suc cess-
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and has managed to keep you capt ivated.
e objective of the IMF Research Bulletin is to present to a wider audience a
sampling of the latest resea rch conducted at the International Monetary Fund.
e bulletin attempts to d istill the main insig hts from IMF research in a friendly
and accessible format, while kee ping a keen eye on current economic policy
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time to invite you, the readers , to discuss how to make the bulleti n more visible
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Rabah Arezki
In This Issue
1 Letter from the
(New) Editor
1 A Primer on
“Global Liquidity”
5 Trade Integration
and Business Cycle
Synchronization
6 Q&A: Seven Questions
on the Global Housing
Markets
10 IMF Working Papers
13 Staff Discussion Notes
13 Fif teenth Jacques
Polak Annual Research
Conference
14 Recommended Readings
from IMF Publications
17 In Memoriam
18 IMF Economic Review
18 Announc ement:
New staff publication
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