2/27/2008

A JPMorgan indicator is showing signs that global liquidity is improving. David Shairp, global strategist at JPMorgan Asset Management, says the gauge, which takes in the U.S. monetary base and the Federal Reserve's custody holdings on behalf of other central banks, has picked up significantly in recent weeks. The global liquidity surge comes as central banks hold more bonds, perhaps because they want to stop their currencies appreciating.

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