Tie Zhu's outlook on dollar liquidity is well worth reading. From a balance sheet perspective, dollar liquidity is not merely a numerical measure of the Fed's balance sheet. It should be defined more as the willingness and ability of financial intermediaries (especially G-SIB banks) to expand their balance sheets under current risk appetite. twitter.com/qinbafrank/status/...

I spent ages struggling to decipher Tie Zhu's article using AI, but finally found the answer with Wu's help. I need to go to Hong Kong tomorrow to get a Master's degree in Finance to brush up on my knowledge.