IMF paper untangles liquidity indicators

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A working paper, published by the International Monetary Fund (IMF) on October 11, uses price and quantity indicators simultaneously to distinguish between shocks to the supply and demand for global liquidity as well as isolating their impact on the economy.

The authors, Sally Chen, Philip Liu, Andrea Maechler, Chris Marsh, Sergejs Saksonovs and Hyun Song Shin, say this is important because they carry different ramifications. A positive demand shock would result in an increase in quantity and

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