Global Liquidity Spillovers

Christian BORDES * Professeur émérite, Université Paris I (Panthéon-Sorbonne). Contact : bordes.christian@wanadoo.fr.L'auteur tient à remercier André Cartapanis, Dominique Lacoue-Labarthe et Marc-Alexandre Sénégas, pour leurs remarques sur une version préliminaire de cet article, ainsi que Roberto Mialich, pour les informations fournies. Le contenu de cette version finale n'engage que l'auteur.

During the “global financial crisis”, the interactions, at a global level, between domestic financial systems appeared to be much more complex and crucial than thought previously. The meaning of the macroeconomic and microeconomic determinants of the gross financial flows or the precise nature of the liquidity “spillovers” call for a renewal of our view of the international monetary and financial system. This paper attempts to give an overview of these interactions by addressing successively the following three questions. What are their origins? What are the extent and diversity of their effects? How can the authorities react to these spillovers?