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Liquidity in sentence

1284 examples of Liquidity in a sentence

If central banks had not acted decisively to inject liquidity into their economies, the world could have faced a much worse outcome.
Thanks to the trillions of dollars of liquidity that major central banks have pumped in to the global economy over the past decade, asset markets have rebounded, company mergers have gone into overdrive, and stock buybacks have become a benchmark of managerial acumen.
Given anemic GDP growth, high unemployment, and low inflation, the wall of liquidity generated by conventional and unconventional monetary easing is driving up asset prices, starting with home prices.
In most economies, these macro-prudential policies are modest, owing to policymakers’ political constraints: households, real-estate developers, and elected officials protest loudly when the central bank or the regulatory authority in charge of financial stability tries to take away the punch bowl of liquidity.
The parent bank would like to use these funds to reinforce the group’s liquidity.
Illiquid but potentially solvent economies, such as Italy and Spain, will need support from Europe regardless of whether Greece exits; indeed, without such liquidity support, a self-fulfilling run on Italian and Spanish public debt is likely.
The substantial new official resources of the IMF and ESM – and ECB liquidity – could then be used to ring-fence these countries, and banks elsewhere in the eurozone’s troubled periphery.
Ironically, this is happening at a moment when the Fund should want to be lending: it is awash in liquidity and has almost no sources of income other than repayment of its loans.
If the IMF had to live up to private-sector standards, it would create a new instrument that would meet members’ potential demand for short-term liquidity.
The Fund has no instrument to provide short-term liquidity to emerging markets facing capital volatility.
If the IMF is to provide short-term liquidity to members in need, a crucial question that must be resolved is whether such financial assistance should be available only to those with strong macroeconomic fundamentals.
Some argue that furnishing members with rapid and front-loaded liquidity insurance would encourage irresponsible policies or reckless borrowing.
“Normal access” should be raised to levels that are concomitant with members’ potential need to borrow, and a new liquidity line to provide reliable and meaningful front-loaded financial support should be created.
Moreover, with more central banks creating liquidity, and international financial centers offering pools of it, such a system would entail a lower risk of cash crunches.
Already, China has been experimenting with the development of offshore renminbi markets in key financial centers, as a way to overcome its currency’s limited liquidity.
Restoring financial market confidence has had to rely on liquidity injections by major central banks.
It should consider developing appropriate liquidity instruments to give confidence to emerging market economies that may be affected by a crisis beyond their control, rather than forcing them to build up ever-larger reserves or resort to regional arrangements for self-insurance.
When central banks try to reduce inflation by pumping liquidity out of the system, their policy is subverted by commercial banks’ ability to pump it back in by making loans.
Central banks’ attempt to pump in liquidity to stimulate activity is subverted by commercial banks’ ability to pump liquidity out by augmenting reserves and refusing to lend.
Recent financial history suggests that the next liquidity crisis is just around the corner, and that such crises can impose enormous economic and social costs.
And the start of a banking union also helps; following the latest stress tests and asset quality review, banks have greater liquidity and more capital to lend to the private sector.
In a push to reduce the cost of borrowing, the Fed purchased long-term assets in the market, injecting liquidity into the financial system.
Sometimes the RCB acted as the government’s banker, providing liquidity without considering the financial markets; at other times, it focused on the financial markets, providing liquidity to banks.
Increasingly, Europe’s politicians regard excess liquidity and economic reform as substitutes for one another.
The more the bank gives on liquidity, the less the politicians will do on reform.
In particular, the stubborn Dutchman understood the extreme danger if Europe’s top monetary authority became too cozy with Europe’s politicians, especially at a time when many EU finance ministers view economic reform and excess liquidity as being essentially the same thing.
When a country gives up its monetary sovereignty, its banks are effectively borrowing in a foreign currency, making them exceptionally vulnerable to liquidity shocks, like that which sparked turmoil in Europe’s banking system in 2010-2011.
While Draghi’s promise, embodied by the ECB’s “outright monetary transactions” program – as well as its long-term refinancing operation and emergency liquidity assistance program – has bought time and lowered yields, the eurozone’s banking crisis persists.
The government maintains liquidity provision at whatever levels are needed to keep the economic engine humming, in a manner dangerously reminiscent of what Thailand was doing before its crisis.
The massive injection of liquidity into China’s economy has contributed to rising debt, especially among local governments and firms, while fueling massive real-estate bubbles, and resulting in significant excess capacity.
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