Options for meeting the demand for international liquidity during financial crises
AbstractThe financial crisis has heightened the awareness of the risk of a sudden shortage of foreign currencies. Governments and central banks are looking for ways to obtain "liquidity assurance", ie the assurance of having access to international liquidity if they need it. This article discusses how such assurance might be provided, whether by multilateral means, such as reserve pooling or structures such as the IMF; by bilateral means, such as swap arrangements; or unilaterally, by building up foreign exchange reserves. All of the possible solutions have advantages and disadvantages, and a diversity of approaches therefore seems likely. If international arrangements are deemed to be inadequate, unilateral actions will continue.
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Bibliographic InfoArticle provided by Bank for International Settlements in its journal BIS Quarterly Review.
Volume (Year): (2010)
Issue (Month): (September)
Find related papers by JEL classification:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- G01 - Financial Economics - - General - - - Financial Crises
- F31 - International Economics - - International Finance - - - Foreign Exchange
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joshua Aizenman & Yothin Jinjarak & Donghyun Park, 2010.
"International reserves and swap lines: substitutes or complements?,"
NBER Working Papers
15804, National Bureau of Economic Research, Inc.
- Aizenman, Joshua & Jinjarak, Yothin & Park, Donghyun, 2011. "International reserves and swap lines: Substitutes or complements?," International Review of Economics & Finance, Elsevier, vol. 20(1), pages 5-18, January.
- Aizenman, Joshua & Jinjarak, Yothin & Park, Donghyun, 2010. "International reserves and swap lines: substitutes or complements?," Santa Cruz Department of Economics, Working Paper Series qt04v2q5s7, Department of Economics, UC Santa Cruz.
- Aizenman, Joshua & Jinjarak, Yothin & PARK, Donghyun Dr., 2010. "International reserves and swap lines: substitutes or complements? ," Santa Cruz Department of Economics, Working Paper Series qt81b751sh, Department of Economics, UC Santa Cruz.
- Joseph Joyce & Raul Razo-Garcia, 2011. "Reserves, quotas and the demand for international liquidity," The Review of International Organizations, Springer, vol. 6(3), pages 393-413, September.
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