GLIndexes

…financial crises create and are then perpetuated by illiquidity…concerns about liquidity rapidly become concerns about solvency…the evolution of the financial system away from traditional banking [and] towards a system dominated by a complex network of collateralized lending relationships serves only to increase the primacy of liquidity

…in the run-up to the financial crisis the level of global liquidity was an important determinant of asset price and consumer price dynamics in several economic regions … and… measures of global liquidity are one of the best performing leading indicators of asset price booms and busts.

… global monetary liquidity measures … are more informative than real variables in detecting boom and bust cycles.

…the major thing we look at is liquidity … looking at the great bull markets of this century, the best environment is a very dull, slow economy that the Federal Reserve is trying to get going…

…with respect to crises, the results of our analysis are clear: credit matters, not money … financial crises throughout history can be viewed as ‘credit booms gone wrong’ … [and] past growth of credit emerges as the single best predictor of future financial instability…

Global liquidity has become a key focus of international policy debates over recent years. This reflects the view that global liquidity and its drivers are of major importance for international financial stability… In a world of high capital mobility, global liquidity cannot be approached as it used to be a few decades ago. It has both an official and a private component…These two concepts both capture one common element, namely the ease of financing