The great wave: global liquidity in a turbulent world

Global imbalances are growing, and it is unclear whether the world’s institutions have enough firepower to respond to a crisis, writes Daniel Hinge

In many respects, the financial crisis that began in 2007 was one of global liquidity. Unprecedented stresses in global markets drove a worldwide flight into US dollars, leaving many banks high and dry, unable to access the dollar liquidity they desperately needed to roll over their funding. Financialisation had proceeded so far that there was no pool of reserves anywhere worldwide that was large enough to backstop the system. Only a lender of last resort would do.

The International Monetary

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: