Liquidity
in sentence
1284 examples of Liquidity in a sentence
But another wave of global liquidity, prompted perhaps by a third round of quantitative easing in the United States, could upset this delicate equilibrium.
The Fed would then cause a
liquidity
squeeze and so distort asset prices as to make much construction, sizable amounts of other investment, and some consumption goods unaffordable (and thus unprofitable to produce).
As soon as the Fed had achieved its inflation-fighting goal, however, it would end the
liquidity
squeeze.
The downturn was not caused by a
liquidity
squeeze, so the Fed cannot wave its wand and return asset prices to their pre-recession configuration.
When the Fed ends a
liquidity
squeeze, it turns the pieces right side up.
In China's case, that means maintaining adequate
liquidity.
One bit of good news is that rollover risk on domestic bonds is not nearly as high as some newspaper headlines have suggested, because the lion’s share is held by local banks and public-sector entities that have large and stable
liquidity
needs.
It takes
liquidity
to make a market successful, and it can be difficult to get a new one started until it achieves a certain critical mass.
Instead, the decline in Indian stocks reflected foreign investors’
liquidity
problems: they withdrew from holdings in India because they needed their money back home, not because it wasn’t growing for them.
Undertaking such a lengthening while events can be controlled need not cause any losses other than taking away the illusion of
liquidity
which investors now entertain but could not exercise because Brazil could not pay them.
They are some of the largest counterparties with the regular banking system, and their combined credit creation and proprietary trading and hedging may account for much of the global
liquidity
flows that make monetary and financial stability so difficult to ensure.
But several years of ultra-loose monetary policy in the advanced countries has led to significant
liquidity
spillover abroad, putting excessive upward pressure on higher-yielding developing countries’ currencies.
Moreover, only a small portion of the
liquidity
created by unconventional monetary policy has been channeled toward households and the small and medium-size enterprises that generate most new jobs.
Instead, global leaders should work to maximize the
liquidity
that unconventional policy measures have generated, and to use it to support investment in long-term productive assets.
No other currency can yet challenge the dollar as an investment medium or reserve asset, nor can other countries match America’s extraordinarily efficient financial markets, which provide unparalleled
liquidity.
The result was a vast amount of cheap
liquidity
that helped to stabilize the financial sector, restore stock and real-estate prices, and increase domestic demand.
First, the emerging economies were flooded with
liquidity
flowing from the advanced economies.
So far, confidence-building measures have been limited to financial markets, through public guarantees,
liquidity
support, and capital injections.
Finally, by cutting energy subsidies and depositing the payments directly in people’s bank accounts, Iran’s government increased household cash holdings and the market’s overall
liquidity.
The measures introduced by the ECB went a long way toward relieving banks’
liquidity
problems, but nothing was done to reduce the large risk premiums on government bonds.
Airing the IMF’s Dirty LaundryBERKELEY – Following the International Monetary Fund’s controversial actions in the Asian financial crisis of 1998, when it conditioned
liquidity
assistance to distressed countries on government belt-tightening, the IMF established an Independent Evaluation Office (IEO) to undertake arm’s-length assessments of its policies and programs.
The upshot of the BRICS meeting was the announcement of the New Development Bank, which will mobilize resources for infrastructure and sustainable development projects, and a Contingent Reserve Arrangement to provide
liquidity
through currency swaps.
After initial allocations in 1970-1972, more were issued to increase global
liquidity
during major international crises: in 1979-1981, in 1997, and, in particular, in 2009, when the largest issue – the equivalent of $250 billion – was made.
One particular worry is that euro-zone money supply is well above the ECB’s benchmark level, indicating an excess supply of
liquidity.
It is doubtful that the ECB would raise interest rates to curb excess
liquidity
so long as economic recovery remains in question.
When the heads of the EU’s member states met in Brussels to deal with the Greek crisis, the interbank market, which is decisive for the
liquidity
of financial institutions, had started to freeze, just like after the collapse of Lehmann Brothers in September 2008.
The
liquidity
injections of quantitative easing (QE) have shifted monetary-policy transmission channels away from interest rates to asset and currency markets.
Indeed, notwithstanding the Fed’s massive
liquidity
injection, the American consumer – who suffered the most during the wrenching balance-sheet recession of 2008-2009 – has not recovered.
As the baton of excessive
liquidity
injections is passed from one central bank to another, the dangers of global asset bubbles and competitive currency devaluations intensify.
Since the start of the financial crisis, the Fed, the European Central Bank, the Bank of England, and the Bank of Japan have used QE to inject more than $4 trillion of additional
liquidity
into their economies.
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