International Liquidity Rents

• Tác giả: Maya Eden
• Ngôn ngữ: eng
• Ký hiệu phân loại: 647.92 Multiple dwellings for long-term residents
• Thông tin xuất bản: World Bank, Washington, DC, 2013
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 295748
• Chủ đề: 1. AGGREGATE DEMAND; 2. AGGREGATE INCOME; 3. AMOUNT OF COLLATERAL; 4. ASSETS; 5. BENCHMARK

Tóm tắt

This paper presents a model of global liquidity shortages. Liquid claims are enforceable promises that play a transaction role. Since developed economies have a comparative advantage in creating liquidity, they export liquid claims to emerging economies, resulting in a permanent current account deficit. This model suggests that unrestricted liquidity flows are (a) welfare reducing for emerging economies and (b) Pareto inefficient. The inefficiency results both from excessive investment for the purpose of creating collateral-backed liquid claims, and from excessive global fragility with respect to collateral shocks.