01737cas a2200253 a 4500 AALejournalIMF005566 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871647 1018-5941 BD-DhAAL BD-DhAAL Berger, Helge. Does Global Liquidity Matter for Monetary Policy in the Euro Area? / Helge Berger, Thomas Harjes. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Global excess liquidity is sometimes believed to limit sovereign monetary policy even in large economies, including the euro area. There is much discussion about what constitutes global excess liquidity and our approach adjusts liquidity for longer-term interest rate and output effects. We find that especially excess liquidity in the U.S. leads developments in euro area liquidity. U.S. excess liquidity also enters consistently positive as a determinant of euro area inflation. There is some evidence that this result may be related to a weakening of the effectiveness of monetary policy in the euro area during times of excessive U.S. liquidity. Mode of access: Internet Harjes, Thomas. IMF Working Papers; Working Paper ; No. 2009/017 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/017/001.2009.issue-017-en.xml IMF e-Library