International liquidity may be defined as that stock of assets which is available to a country’s monetary authorities to cover payments imbalances (when the exchange rate is fixed) or to influence the exchange value of the currency (when the exchange rate is flexible). A distinction may be drawn between unconditional liquidity, which is generally owned by the country concerned and may be used at its sole discretion, and conditional liquidity, which comprises access to borrowing facilities and is generally available only on conditions set by the lenders. Because of the obvious practical difficulties in measuring conditional liquidity, the operational measure of international liquidity that is generally used in discussion of the subject is that of gross international reserves.
- Crockett, A.D. 1978. Control over international reserves. Washington, DC: IMF Staff Papers, March.Google Scholar
- Heller, H.R., and M.S. Khan. 1978. The demand for international reserves under fixed and floating exchange rates. Washington, DC: IMF Staff Papers, December.Google Scholar
- International Monetary Fund. 1970. International reserves: Needs and availability. Washington, DC: International Monetary Fund.Google Scholar
- Mundell, R.A., and J.J. Polak (eds.). 1977. The new international monetary system. New York: Columbia University Press.Google Scholar
- Von Furstenberg, G.M. (ed.). 1983. International money and credit: The policy roles. Washington, DC: International Monetary Fund.Google Scholar
- Willett, T.D. 1980. International liquidity issues. Washington, DC: American Enterprise Institute.Google Scholar