Journal Article

Liquidity shocks, real interest rates, and global imbalances


Abstract: The author uses a simple neoclassical model to show how liquidity shocks at home and abroad can contribute to trade imbalances and low real interest rates. The author?s interpretation is consistent with Bernanke?s (2005) ?global saving glut? hypothesis.

Keywords: International trade; Liquidity (Economics); Interest rates;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Review

Publication Date: 2012

Volume: 94

Issue: May

Pages: 187-196