So monetary policy, the only force available, had to change in order to supply liquidity to the system and bring down interest rates.

Many stress that the Fed has done the most essential thing now in adopting a policy of supplying liquidity to meet the needs of the economy.

Bank and sovereign funding would almost entirely disappear in weaker nations, with the ECB no longer able to supply alternative liquidity.

Greenspan reassurance Announcement that Fed would supply liquidity to financial system continues to give reassurance.

Central banks have also agreed to supply liquidity in other major currencies if needed.

In 1997, he supplied liquidity again to offset the escalating Asian financial crisis.

In sum, we would be foolish lightly to dismiss a system that, with all its imperfections, has managed over the years to supply extraordinary liquidity to our financial markets.

"The Japanese are implicitly supplying short-term liquidity to the world financial system and leaving it to others to transform these liquid funds into other investments."

A "global economy," like any national economy, needs a financial system with a central direction that can supply liquidity when needed.

In some markets such as NASDAQ, dealers supply liquidity.