01917cas a2200277 a 4500 AALejournalIMF017936 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484325216 1018-5941 BD-DhAAL BD-DhAAL Choi, Woon. Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses / Woon Choi, Taesu Kang, Geun-Young Kim, Byongju Lee. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (31 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 This paper distills and identifies global liquidity (GL) momenta from the macro-financial data of advanced economies through a factor model with sign restrictions as policy-driven, market-driven, and risk averseness factors. Using a panel factor-augmented VAR, we investigate responses of emerging market economies (EMEs) to GL shocks. A policy-driven liquidity increase boosts growth in EMEs, elevating stock prices and currency values, while a risk averseness rise has an opposite effect. A market-driven GL expansion boosts stock markets and lowers funding costs, promoting competitiveness and current account. Inflation targeting EMEs fare better than EMEs under alternative regimes with respect to macrofinancial volatility. Mode of access: Internet Kang, Taesu. Kim, Geun-Young. Lee, Byongju. IMF Working Papers; Working Paper ; No. 2017/222 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/222/001.2017.issue-222-en.xml IMF e-Library