Global liquidity

Global liquidity refers to the ease with which assets can be bought or sold in the worldwide financial system. It encompasses the availability of cash and easily convertible assets that facilitate economic activities like investment, borrowing, and spending. When global liquidity is high, funds are abundant, making borrowing cheaper and encouraging growth. Conversely, low liquidity means funds are scarcer, potentially dampening economic activity. Factors influencing global liquidity include central bank policies, interest rates, currency stability, and international capital flows. Overall, it reflects the overall ability of markets and countries to access and deploy financial resources efficiently.