THE INFLUENCE OF CURRENT GLOBAL LIQUIDITY TRENDS ON ECONOMIC STABILITY IN EMERGING COUNTRIES

The link between economic and financial conditions in emerging markets and global liquidity is not obvious. The article starts by explaining what global liquidity is and how it is defined in international literature. It then describes how to measure global liquidity and what factors should be taken into consideration in order to obtain reliable results. The next part of the article describes the influence of global stability on emerging markets and the extension of current global liquidity trends onto these markets. The following part is devoted to the role of global liquidity both at the global and regional level. It describes why global liquidity has just an impact on economic stability. Therefore, there are presented the consequences of current global liquidity on emerging markets countries. The article provides the examples in order to better description of the issue.  At the end, the author attempts to answer the question whether the global liquidity poses threat on emerging markets and how the negative consequences of global liquidity trends might be omitted. The main aim of the article is compilation and review of the recent articles concerning the influence of global liquidity on developing countries. 

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