Berument, HakanTogay, S.Sahin, A.2015-07-282015-07-2820110923-7992http://hdl.handle.net/11693/12261This paper proposes a new liquidity measure for a small open economy. The new measure includes the net liquidity provided to the system by a central bank after accounting for the central bank's involvement in the foreign exchange market. Empirical evidence gathered from Turkey suggests that a positive innovation in liquidity increases output temporarily and that its effect on prices, exchange rate and money are permanently higher.EnglishLiquidity effectOpen economy version of NBRSmall and open economiesVAR modelsArticle10.1007/s11079-009-9164-21573-708X