Contractionary adjustment policies, poor business confidence, shortage of domestic liquidity and scarcity of external finance underlie the economic contraction in the crisis countries in Asia.

It is often suggested that what is called the subprime crisis was the result of lax monetary policies that led to excess liquidity in financial markets. But there is an obvious paradox here, because how can an excess of liquidity result ultimately in a shortage of liquidity that has to be made up by central banks?

Shortage of food

Liquidity position

Liquidity policy

The IMF would have to be able to issue additional SDRs in periods of shortage, as when the Fed provided dollar swaps to ensure adequate dollar liquidity in the second half of 2008. At the moment, countries holding 85 of IMF voting power must agree before SDRs can be issued, which is no recipe for liquidity.

Experiencing shortage of food

Shortage in extrabudgetary funding

Is Liquidity Enough?

The Liquidity Puzzle

5. Liquidity position

(i) Shortage of financial resources

The Liquidity Time Bomb

Last September, however, financial conditions changed suddenly in Hong Kong. The liquidity shortage caused by the European sovereign debt crisis led developed countries banks especially European banks with exposure in Hong Kong to withdraw their funds, taking dollars with them.

Pollution, energy shortage, environmental diversity, poverty.

There was a shortage of fuel.

(b) A shortage of medical specialists

Is there a shortage of rouge?

A shortage of work. Money problems.

What determines a liquidity crisis?

If you believe that the crisis was caused by a shortage of liquidity, we had plenty of models analyzing liquidity shortages and their effects on financial institutions. If you believe that the blame lies with greedy bankers and unthinking investors, lulled by the promise of a government bailout, or with a market driven crazy by irrational exuberance, we had studied all this too, in great detail.

quot (b) A shortage of medical specialists

G. Liquidity available cash versus liabilities

But we have a major shortage of organs.

There is a shortage of good building wood.

Another constraining factor is the shortage of finance.

No end in sight for the electricity shortage.

408. More than half of the households surveyed had experienced little shortage of food (53.6 per cent), 27.8 per cent of households had definitely not experienced shortage of food, and 11.8 per cent had experienced shortage of food.

And 40 states already have an acute nursing shortage.

Sadly, today there is no shortage of human suffering.

There is no shortage of material to work on.

23. The Government still experiences a severe cash shortage.

The housing shortage was particularly acute in East Jerusalem.

(i) The shortage of information on all health matters

Any good bank clerk can cover up alittle shortage.

There's a serious shortage of cups aboard this ship.

Well There is no shortage of disasters every year.

Statement IV. Liquidity position at 31 December 1997

2. Cash flow and liquidity . 13 18 19

Huge shortage of organs, God forbid, if you need one.

A number of countries reported a shortage of qualified staff.

There is an estimated shortage of around 1.5 million vacancies.

(a) A shortage of all forms of first aid treatment

The breakdown was fundamentally a liquidity crisis, and liquidity was easily restored in several ways the New York banks issued their own liquidity through a clearing house one massively powerful financial institution, J.P. Morgan, bought up collapsing shares, and thus reversed a market panic and a scramble for liquidity and European central banks supplied gold to the American market.

Statement IV. Liquidity position (consolidated) at 31 December 1997