Increased programme expenditures have also eroded the excess liquidity.

Increasingly, Europe s politicians regard excess liquidity and economic reform as substitutes for one another.

That leaves a huge sum of excess liquidity sloshing around in global asset markets.

As a result, all of this excess liquidity is flowing to the financial sector rather than the real economy.

By contrast, countries that exported capital now enjoy an excess of liquidity because capital is shying away from saturated countries.

The Fed s policy of quantitative easing exacerbates the flow of excess liquidity, which could result in dangerous bubbles in emerging markets.

Instead, excess liquidity and fresh asset bubbles could emerge in the world s financial and housing markets, impeding, if not torpedoing, growth.

It is doubtful that the ECB would raise interest rates to curb excess liquidity so long as economic recovery remains in question.

Lowering volatility and sopping up excess liquidity can be beneficial, but there are risks here as well regulators can easily overshoot the mark, leaving financial markets with weakened capacity for price discovery and too little liquidity.

24. As the Executive Board was advised at its 1993 regular session, excess liquidity was not the result of the liquidity policy itself, but the result of income exceeding projections and programme expenditure not meeting projections.

21. As the Executive Board was advised at its 1993 regular session, excess liquidity was not the result of the liquidity policy itself, but the result of income exceeding projections and programme expenditure not meeting projections.

A downshift to this more sustainable pace would provide welcome relief for an economy long plagued by excess resource consumption, labor market bottlenecks, excess liquidity, a large buildup of foreign exchange reserves, and mounting inflationary pressures.

In Germany, banks earn close to nothing on the hundreds of billions of euros of excess liquidity that they have deposited at the ECB.

If they have built up large, monetized fiscal deficits, they should raise taxes, reduce spending, and mop up excess liquidity sooner rather than later.

The reason is simple while base money is soaring, the velocity of money has collapsed, with banks hoarding the liquidity in the form of excess reserves.

The central bank (PBOC) initially attributed it to excess liquidity, and so began to use monetary policy tools, raising interest rates five times since late 2007.

The reason is simple while base money is soaring, the velocity of money has collapsed, with banks hoarding the liquidity in the form of excess reserves.

The credit channel also is not working properly, as banks have hoarded most of the extra liquidity from QE, creating excess reserves rather than increasing lending.

Call it information liquidity, akin to financial liquidity.

Today, as all major developed economies resort to expansionary monetary policy, the global economy is being flooded with excess liquidity, and a currency war is looming large.

If they remove the stimulus too soon by raising taxes, cutting spending, and mopping up the excess liquidity, the economy may fall back into recession and deflation.

Liquidity position

Is Liquidity Enough?

The Liquidity Puzzle

Substantial bank liquidity.

3. Liquidity ratio

Liquidity position (consolidated)

To excess?

If they take their fiscal deficits (and a potential monetization of these deficits) seriously and raise taxes, reduce spending, and mop up excess liquidity, they could undermine the already weak recovery.

Hyun Song Shin of Princeton University proposed a theory of excess liquidity in a paper with Tobias Adrian that he presented last month at the Bank for International Settlements in Brunnen, Switzerland.

The Liquidity Time Bomb

Liquidity position 33 35

The liquidity policy will be monitored against the new liquidity trend in future audits.

Excess valuation a

Mmhmm. To excess?

So the dominos are excess consumption excess dopamine, Delta FosB, brain changes.

This is the movement from Americans defining their success on having things to having liquidity, because the less excess that you have around you, the more nimble and fleet of foot you are.

This is the movement from Americans defining their success on having things to having liquidity, because the less excess that you have around you, the more nimble and fleet of foot you are.

So the key emerging issue for policymakers is to decide when to mop up the excess liquidity and normalize policy rates and when to raise taxes and cut government spending (and in which combination).

Confronting the Coming Liquidity Crisis

NET DECREASE IN LIQUIDITY Notes

Liquidity is still very high.

China s Excess Capacity Nightmare

If you don't call that excess, Doctor, I'm sure I don't know what excess is.

The third problem concerns international liquidity.