Liquidity conditions in interbank markets are therefore correlated at the global level, because many of the key players are subject to common shocks, and this probably is a key factor explaining similar liquidity conditions across money markets. At the risk of pointing out the obvious, let me stress that liquidity shocks are not exclusive to stress situations.
Agustín Carstens: Emerging markets Text of The Bagehot Lecture by Mr Agustín Carstens, Governor of the Bank of Mexico, at The Buttonwood Gathering 2013 “Searching for financial stability”, The Economist, New York City, 30 October 2013. *  *  *  It is a great honor to have been invited to deliver this Bagehot Lecture.