Emerging markets: global excess liquidity, portfolio investments and asset prices.

Summary This thesis attempts to qualitatively and quantitatively analyze the sometimes destabilizing impacts of excess global liquidity on emerging market asset prices. This excess of global liquidity has notably materialized in the form of a boom in portfolio investments in emerging markets, the study of which has become a central theme for both policy makers and the asset management industry. In this respect, we propose to circumvent the weaknesses of the Balance of Payments data by constructing a non-delayed, high-frequency indicator of portfolio flows, using EPFR data. The yield-seeking dynamics induced by the implementation of unconventional monetary policies by the main central banks of the developed markets has led to a strong inflation of asset prices, first and foremost in the emerging equity markets, where potential bubbles could appear in the so-called "New Normal" period.