scholarly journals Is the Money Gap a Misleading Measurement of Excess Liquidity?

2022 ◽  
Vol 3 (1) ◽  
pp. 447-458
Author(s):  
Noha El-Demery
Keyword(s):  
Excess Liquidity

scholarly journals TREASURY BILLS AND/OR CENTRAL BANK BILLS FOR ABSORBING SURPLUS LIQUIDITY: THE MAIN CONSIDERATIONS

2013 ◽  
Vol 04 (02) ◽  
pp. 1350011
Author(s):  
OBERT NYAWATA
Keyword(s):  
Central Bank ◽  
Banking System ◽  
Central Banks ◽  
Market Development ◽  
Practical Reasons ◽  
Treasury Bills ◽  
Positive Externalities ◽  
Excess Liquidity ◽  
Challenging Question ◽  
Transmission Of Monetary Policy

This paper discusses the challenging question of whether central banks should use Treasury bills or central bank bills for draining excess liquidity in the banking system. While recognizing that there are practical reasons for using central bank bills, the paper argues that Treasury bills are the first best option especially because of the positive externalities for the financial sector and the rest of the economy. However, the main considerations in the choice should be: (i) operational independence for the central bank; (ii) market development; and (iii) the strengthening of the transmission of monetary policy impulses.

Cryptocurrencies, Evolution of Means of Payments and Validity of Monetary Principles

2021 ◽  
Vol 54 (3) ◽  
pp. 469-498
Author(s):  
Edoardo Beretta
Keyword(s):  
21St Century ◽  
Economic History ◽  
Analytical Approach ◽  
Statistical Evidence ◽  
Blockchain Technology ◽  
Financial Bubble ◽  
Excess Liquidity ◽  
Real Value ◽  
Evolving Context

The paper explores the role, evolution and ruling principles of the concept of “money” in the 21st Century. In this continuously evolving context, cryptocurrencies and Blockchain technology are widely considered the most relevant monetary innovations of the last decades. By means of a macro-founded logical-analytical approach combined with statistical evidence, the paper provides arguments: 1. dismissing the “innovation myth” behind cryptocurrencies because of de facto representing a comeback of the private issue of means of payments and, more problematically, seigniorage at its best; 2. confirming that crypto-tokens do not comply with basic, still ruling monetary principles; 3. suggesting that excess liquidity is already invested in crypto-markets (which are themselves “inflationary”, namely not backed by real value (i.e. GDP). The concrete risk is, once again in economic history, represented by facing a financial bubble.

The Impact of Global Liquidity on Developing Countries

2017 ◽  
pp. 265-282
Author(s):  
Erhan Genç ◽  
Mustafa Karabacak
Keyword(s):  
Developing Countries ◽  
Financial Stability ◽  
Focal Point ◽  
Developed Countries ◽  
Monetary Policies ◽  
Growth Performances ◽  
Excess Liquidity ◽  
Causality Tests ◽  
Global Liquidity ◽  
National Economies

Global liquidity has become a focal point of international political discussions in recent years. Increasing international financial asset transactions and expansionary monetary policies, which central banks of developed countries adopt, generate excess liquidity around the world. Today with the increasing capital mobilization excess global liquidity becomes effective on the national economies and monetary policies of developing countries as well. It is seen that increasing risk appetite, especially after 2008 global crisis, causes a flow of global liquidity from developed countries to developing countries. The so-called liquidity may be effective on monetary policy stability, financial stability and growth performances. In other words; the increasing global liquidity may have both positive and negative influences on national economies. In this context; in this study, the effects of global liquidity on national economies is analyzed by using the measures of global liquidity and causality tests.

Excess Liquidity and Inflation Dynamics in China: 1997-2007

2008 ◽  
Vol 16 (4) ◽  
pp. 1-15 ◽  
Author(s):  
Chengsi Zhang ◽  
Hong Pang
Keyword(s):  
Inflation Dynamics ◽  
Excess Liquidity

Assessing excess liquidity in the euro area: the role of sectoral distribution of money

2011 ◽  
Vol 43 (23) ◽  
pp. 3213-3230 ◽  
Author(s):  
Giuseppe Ferrero ◽  
Andrea Nobili ◽  
Patrizia Passiglia
Keyword(s):  
Euro Area ◽  
Excess Liquidity

An Examination of Factors Affecting Excess Liquidity, Evidence from Islamic Banks in Malaysia

2019 ◽  
pp. 259-275
Author(s):  
Md Hakim Ali ◽  
Saiful Azhar Rosly ◽  
Maha Radwan ◽  
Silvana Secinaro
Keyword(s):  
Islamic Banks ◽  
Factors Affecting ◽  
Excess Liquidity

Momentum and Reversals When Overconfident Investors Underestimate Their Competition

2020 ◽  
Vol 34 (1) ◽  
pp. 351-393 ◽  
Author(s):  
Jiang Luo ◽  
Avanidhar Subrahmanyam ◽  
Sheridan Titman
Keyword(s):  
Signal Quality ◽  
Price Efficiency ◽  
Long Run ◽  
Excess Liquidity ◽  
Short Run ◽  
Empirical Implications

Abstract We develop a model in which overconfident investors overestimate their own signal quality but are skeptical of others’ Investors who are initially uninformed believe that early-informed investors have learned little, leading the former investors to provide excess liquidity, which, in turn, causes underreaction and short-run momentum. Skeptical investors can also react to stale information, causing momentum, followed by reversals. Hence, skepticism generates both momentum and reversals; the latter are amplified if investors overassess their own signal precision. We explain how long-run reversals can disappear while shorter-term momentum prevails, provide empirical implications, and link momentum to liquidity and price efficiency.

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