"Inflation and the Macroeconomy: Changes from the 1980s to the 1990s." Bank of Canada Review, Spring 2002. Available at: http://www.bankofcanada.ca/en/review/2002/r02-3-ea.html. BIS Review 111/2007  3  So that's a look at macroeconomic and market liquidity. Now I'd like to provide a snapshot of the liquidity situation before the summer turbulence. Liquidity before the summer turbulence Let me start with the state of macroeconomic liquidity.
For several years, the world economy has been characterized by ample liquidity. In comparison with historic norms, long-term real interest rates have been low, and money and credit have grown fairly quickly in most G-7 countries and in such emerging-market countries as China and India.