Global Liquidity

Definition ∞ Global liquidity refers to the overall availability of credit and money across international financial systems. It signifies the ease with which financial assets can be converted into cash worldwide. High global liquidity generally supports asset prices and economic expansion.
Context ∞ The current state of global liquidity is a subject of intense scrutiny, with central bank policies and geopolitical events significantly influencing its ebb and flow. Analysts are observing how changes in liquidity impact asset valuations across traditional and digital markets, assessing potential risks and opportunities for investors.