Global Monetary Liquidity: Theory, Indicators, Trends
The article analyzes different approaches to determining global liquidity, revealing its significance for the sustainable functioning of the global financial market; the estimation of the basic tendencies in dynamics of global liquidity in 2000-2016 is given. The necessity of dividing between the concepts of global financial and monetary liquidity is substantiated. The role of “parallel banking” and offshore financial centers in the formation of global financial liquidity is revealed. The specifics of the cyclical dynamics of financial instruments classified as «money-like» are disclosed. Theoretical interrelations of the formation of global monetary liquidity with the evolution of the monetary mechanism in the modern economy are disclosed. Conclusions are drawn about the slowing of global liquidity's growth rates in the post-crisis period, the change in its structure (the growth of the share of debt securities and the growth of the dollar component) based on the estimations of global liquidity according to the Bank for International Settlements. A growing redistribution of global liquidity in favor of developing countries and emerging markets is shown. Author's proposals for assessing global liquidity are given, taking into account the Basel capital adequacy ratios.