Monetary Liquidity and International Capital Flows
The concept of liquidity can be interpreted in many different ways and liquidity measures differ widely. However, as this chapter shows, there is no best liquidity measure that fulfills all purposes. Instead, the important point is to choose a measure that is in line with the objectives of the study. Therefore, the aim of this chapter is to derive a bundle of liquidity measures, which cover stock market relevant monetary aspects. This chapter is structured as follows.