Causality of Bank Liquidity Creation and Economic Growth from Multinational Perspectives

• Main Authors: Chih-Chieh Chang, 張智傑
• Other Authors: Yi-Kai Chen
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/68336327925709177468

碩士 === 國立高雄大學 === 經營管理研究所 === 97 === In the real world, the liquidity creation from the bank is closely related to the economic growth. Liquidity creation from the bank plays an important role on stimulating economic growth. However, the causality between liquidity creation and economic growth is an unclear issue. Existing literatures indicate the liquidity creation may change dramatically before financing crisis. Yet, the bank might be more willing to lend money to firms during the higher growth than lower growth. Furthermore, we test the lead and lag relationship between liquidity creation and economic growth. The results show that GDP is a leading factor to bank liquidity creation in Spain. And there is a feedback effect in France, New Zealand and USA. When we test the Granger causality relationship between large bank liquidity creation and GDP, the result is consistent.