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ORCID

Mateusz Mariusz Mierzejewski: 0000-0001-8542-2373

Keywords

Global Liquidity Index, cyclical patterns, post-pandemic crisis

Abstract

In the past few years, set against the backdrop of pandemic mitigation efforts and the resultant inflationary spike, the macrofinancial landscape has undergone significant transformation. The tightening of monetary policy by global central banks in response to these phenomena has notably affected global financial liquidity, particularly within the realm of foreign currency lending. This article delves into the shifts in credit liquidity, centering on the Global Liquidity Index for euro-denominated loans across European Union nations over the last two decades. Through the application of the Fourier Transform, we analyse the cyclical patterns within the index and delineate the primary phases of its evolution: pre- and post- the 2008/2009 financial crisis, and the inception of a potential new liquidity phase. The analysis reveals a qualitative transformation in the index’s harmonic cycles from the initial two phases, an augmented presence of short cycles in the series dynamics, and it posits that the Third Liquidity Phase, emerging in the wake of the post-pandemic crisis, may maintain the dynamic patterns established in the preceding phase.

Acknowledgments

Funding

The article present the result of the Project no 023/EER/2023/POT financed from the subsidy granted to the Krakow University of Economic.

The cost of editing selected articles published in the Journal of Banking and Financial Economics in the 2022–2024 is covered by funding under the program ‘Development of Scientific Journals’ of the Ministry of Education and Science under agreement No. RCN/SN/0321/2021/1. Task title: ‘Verification and Correction of Scientific Articles and Their Abstracts’. Funding value: 21 197,00 PLN; The task consists of professional editing of articles published in English.

Declaration of Conflicting Interests

The author declared no potential conflicts of interest with respect to the research, authorship, and publication of the article.

Declaration about the scope of AI utilisation

The authors did not use an AI tool in the preparation of the article.

First Page

32

Last Page

41

Page Count

10

Received Date

10.04.2024

Revised Date

21.10.2024

Accept Date

13.11.2024

Online Available Date

11.12.2024

DOI

10.7172/2353-6845.jbfe.2024.2.3

JEL Code

E3; E5; G1; G17

Publisher

University of Warsaw

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