05454oam 22014534 450 991096226630332120250426110129.09781475509687147550968597814755378951475537891(CKB)2550000000107098(EBL)1606754(SSID)ssj0000943226(PQKBManifestationID)11484313(PQKBTitleCode)TC0000943226(PQKBWorkID)10977031(PQKB)10241726(Au-PeEL)EBL1606754(CaPaEBR)ebr10574691(OCoLC)794602571(IMF)WPIEE2012135(IMF)WPIEA2012135(MiAaPQ)EBC1606754WPIEA2012135(EXLCZ)99255000000010709820020129d2012 uf 0engurcn|||||||||txtccrOptimal Liquidity and Economic Stability /Linghui Han, Il Lee1st ed.Washington, D.C. :International Monetary Fund,2012.1 online resource (24 p.)IMF Working Papers"Asia and Pacific Department.""May 2012."9781475556919 1475556918 9781475503883 1475503881 Includes bibliographical references.Cover; Contents; I. Introduction; II. Defining Liquidity and Optimality; III. Testing for Causality between Liquidity and Prices; IV. Relationship between liquidity and consumption; V. Summary and Conclusion; References; Annexes; A. Sources of Data and Estimation Results; B. Relationship Liquidity and DemandMonetary aggregates are now much less used as policy instruments as identifying the right measure has become difficult and interest rate transmission has worked well in an increasingly complex financial system. In this process, little attention was paid to the potential spillover of excess liquidity. This paper suggests a notional level of "optimal" liquidity beyond which asset prices will start to rise faster than the GDP deflator, thereby creating a gap between the face value and the real purchasing value of financial assets and widen the wedge in income between those with capital stock and those living on salaries. Such divergence will eventually lead to an abrupt and disorderly adjustment of the asset value, with repercussions on the real sector.IMF Working Papers; Working Paper ;No. 2012/135Liquidity (Economics)Monetary policyInternational financeFinance: GeneralimfMacroeconomicsimfMoney and Monetary PolicyimfIndustries: Financial ServicesimfMethodology for Collecting, Estimating, and Organizing Macroeconomic DataimfData AccessimfInvestmentimfCapitalimfIntangible CapitalimfCapacityimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfPortfolio ChoiceimfInvestment DecisionsimfPrice LevelimfInflationimfDeflationimfFinancial Institutions and Services: GeneralimfMacroeconomics: ConsumptionimfSavingimfWealthimfFinanceimfMonetary economicsimfLiquidityimfAsset pricesimfMonetary aggregatesimfFinancial sectorimfConsumptionimfEconomicsimfPricesimfMoney supplyimfFinancial services industryimfUnited StatesimfLiquidity (Economics)Monetary policy.International finance.Finance: GeneralMacroeconomicsMoney and Monetary PolicyIndustries: Financial ServicesMethodology for Collecting, Estimating, and Organizing Macroeconomic DataData AccessInvestmentCapitalIntangible CapitalCapacityMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralPortfolio ChoiceInvestment DecisionsPrice LevelInflationDeflationFinancial Institutions and Services: GeneralMacroeconomics: ConsumptionSavingWealthFinanceMonetary economicsLiquidityAsset pricesMonetary aggregatesFinancial sectorConsumptionEconomicsPricesMoney supplyFinancial services industry332.1/52Han Linghui1815878Lee Il1815879DcWaIMFBOOK9910962266303321Optimal Liquidity and Economic Stability4371488UNINA