Abstract
This chapter explores selected aspects of the measurement of global liquidity.1 We focus on the international dimension of credit that cannot he fully captured by the monetary and balance-of-payments statistics typically used to proxy liquidity. We define the international dimension of credit to comprise two different but related components: foreign currency credit to residents, regardless of the lender’s loca- tion; and cross-border (external) credit, regardless of the currency of denomination.2 We measure these components by combining interna- tional financial statistics of the Bank for International Settlements (BIS) and national sources (see Box 5.1) and we identify regularities in their behaviour, both in the aggregate and in individual countries. Some findings stand out.
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© 2014 Claudio Borio, Robert N. McCauley and Patrick McGuire
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Borio, C., McCauley, R.N., McGuire, P. (2014). Global Liquidity and Credit Booms. In: Winkler, B., Riet, A.v., Bull, P. (eds) A Flow-of-Funds Perspective on the Financial Crisis. Palgrave Studies in Econmics and Banking. Palgrave Macmillan, London. https://doi.org/10.1057/9781137352989_5
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DOI: https://doi.org/10.1057/9781137352989_5
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