Discussion of "Global liquidity and cross-border bank flows by Eugenio Cerutti, Stijn Claessens, and Lev Ratnovski"

This paper asks which factors best capture global financial conditions. More specifically, it asks which monetary and financial indicators are most relevant to explain cross-border bank flows. The twist relative to the existing literature is to also explore European indicators and compare their relevance to the relevance of US indicators, on which the existing literature has mostly focused. This interesting paper thus provides a new angle to this extremely policy-relevant literature.