The Global Liquidity Outlook

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What Drives Global Liquidity and How to Spot The Next Crisis?

 

This report examines the drivers of Global Liquidity from the angle of financial intermediation. It studies two components – the shadow monetary base and the collateral multiplier – and concludes that Global Liquidity likely bottomed last October and should rise gradually from its trough through 2023. Bad things always happen at low levels of liquidity. Not surprisingly, the takeovers of distressed SVB and Credit Suisse mark the low. Uncertainty still remains but we offer a simple daily stress index as one way to monitor upcoming liquidity risk.

 

 

 

See our latest published research, Global View: What Drives Global Liquidity and How to Spot The Next Crisis? – March 2023

 

 

 

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