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Does G-4 Liquidity Spill Over?, L. Psalida, Tao Sun

Creator
Contributor
Abstract
The resumption of strong capital flows into emerging markets in mid-2009 brought back the debate over whether pull or push factors are the main determinants. This paper, using panel specifications with alternative measures of global liquidity, asks the question whether G-4 liquidity expansion spills over to the rest of the world. The paper finds strong positive links between G-4 liquidity expansion and asset prices, such as equities, in the liquidity receiving economies, which indicates that the push factor plays an important role in asset prices. Liquidity also has a strong positive link with the accumulation of official reserves and with equity portfolio inflows in receiving economies. Moreover, the association between excess equity returns, excess credit growth, and global liquidity has implications for rising risks to financial stability in the receiving economies
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Setting the Stage for The 2003-10 Global Liquidity Expansion; 1. Global Liquidity; 2. Change of Central bank Policy Rates; 3. Liquidity Receiving Economies: Composition of Capital Inflows; 4. Emerging Markets Equity Indices; III. Literature Review; IV. Methodology and Data; V. G-4 Spillover Channels to Liquidity Receiving Economies; A. G-4 Liquidity and Receiving Economies' Official Foreign Reserves; 1. Fixed-Effects Panel Least-Square Estimation of the Determinants of Official
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (39 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781463950767

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