Implications of the liquidity crisis in the Baltic-Nordic region

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Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Language:
Anglų kalba / English
Title:
Implications of the liquidity crisis in the Baltic-Nordic region
In the Journal:
Baltic journal of economics. 2014, Vol. 14, no. 1-2, p. 35-54
Summary / Abstract:

LTReikšminiai žodžiai: Financinė krizė; Finansų krizė; Kapitalo srautai; Likvidumo pozicija; Politikos pasekmės; Politikos poveikis; Capital flows; Capitalflows; Financial crisis; Liquidity position; Policy implication; Policy implications.

ENThis paper provides a more thorough empirical examination of the development and determinants of the liquidity position in the financial sector during the last financial crisis in the Baltic-Nordic region, which takes into consideration the whole economic cycle. The current study serves as an extension to an ex-ante study which was made in 2010. We look at fiscal and monetary policy implications of the liquidity problems arising in the crisis and stabilization process after that. The results show that the changes (and the speed of changes) of interest rates, GDP and money supply have occurred relatively fast, meaning that the rising area of the LM curve has been shorter than theory would predict. Market reactions took place quickly and simultaneously – there was no time for the slow restructuring, thus liquidity needs were higher than generally. [From the publication]

DOI:
10.1080/1406099X.2014.949603
ISSN:
1406-099X; 2334-4385
Related Publications:
The Baltic banking system in the enlarged European Union: the effect of the financial crisis on efficiency / José Luis Gallizo, Jordi Moreno, Manuel Salvador. Baltic journal of economics. 2018, Vol. 18, no. 1, p. 1-24.
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https://www.lituanistika.lt/content/57130
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2021-04-18 17:24:59
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