In many theoretical models of debt crises, the operative trigger for the run on sovereign debt is a shortage of the liquidity reserves necessary to finance short-term debt services. As a result, the concept of a solvent, illiquid sovereign debtor has generated significant literature on debt...

Global liquidity expansion has been very dynamic since 2001. Contrary to conventional wisdom, high money growth rates have not coincided with a concurrent rise in goods prices. At the same time, however, asset prices have increased sharply, significantly outpacing the subdued development in...

Global liquidity expansion has been very dynamic since 2001. Contrary to conventional wisdom, high money growth rates have not coincided with a concurrent rise in goods prices. At the same time, however, asset prices have increased sharply, significantly outpacing the subdued development in...