Implementing an International Lender of Last Resort
AbstractCurrent research discusses various general frameworks for installing an international lender of last resort (ILOLR). However, it remains unclear how the ILOLR should actually operate. This paper discusses six different options of construction of an ILOLR who supports central banks in the case of currency crises. The paper concludes that the cost efficient version of the ILOLR would be direct interventions by the IMF by the use of IMF resources and the right to dispose additional reserves from central banks. The paper considers measures of cost efficiency, such as cost of borrowing, intervention, and sterilization and moral hazard problems.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Halle Institute for Economic Research in its series IWH Discussion Papers with number 20.
Date of creation: Nov 2006
Date of revision:
international lender of last resort; International Monetary Fund; currency crises;
Find related papers by JEL classification:
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-25 (All new papers)
- NEP-CBA-2006-11-25 (Central Banking)
- NEP-MON-2006-11-25 (Monetary Economics)
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.:
- P. Burger & T. Knedlik, 2004. "The Mci As A Monetary Policy Guide In A Small, Open Emerging Market Economy," South African Journal of Economics, Economic Society of South Africa, vol. 72(2), pages 365-383, 06.
- Giancarlo Corsetti & Bernardo Guimaraes & Nouriel Roubini, 2003.
"International Lending of Last Resort and Moral Hazard: A Model of IMF's Catalytic Finance,"
NBER Working Papers
10125, National Bureau of Economic Research, Inc.
- Corsetti, Giancarlo & Guimaraes, Bernardo & Roubini, Nouriel, 2006. "International lending of last resort and moral hazard: A model of IMF's catalytic finance," Journal of Monetary Economics, Elsevier, vol. 53(3), pages 441-471, April.
- Jan A. Kregel, 1998.
"Yes, 'It' Did Happen Again: A Minsky Crisis Happened in Asia,"
Economics Working Paper Archive
wp_234, Levy Economics Institute, The.
- J.A. Kregel, 1998. "Yes, "It" Did Happen Again - A Minsky Crisis Happened in Asia," Macroeconomics 9805017, EconWPA.
- Abdul Abiad, 2003. "Early Warning Systems: A Survey and a Regime-Switching Approach," IMF Working Papers 03/32, International Monetary Fund.
- Jane Sneddon Little & Giovanni P. Olivei, 1999.
"Rethinking the International Monetary System: an overview,"
New England Economic Review,
Federal Reserve Bank of Boston, issue Nov, pages 3-24.
- Jane Sneddon Little & Giovanni P. Olivei, 1999. "Rethinking the International Monetary System: an overview," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 43(Jun), pages 1-31.
- Kenneth Rogoff, 1999.
"International Institutions for Reducing Global Financial Instability,"
NBER Working Papers
7265, National Bureau of Economic Research, Inc.
- Kenneth Rogoff, 1999. "International Institutions for Reducing Global Financial Instability," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 21-42, Fall.
- Barry J. Eichengreen, 1999. "Policy making in an integrated world: from surveillance to ...?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 43(Jun), pages 205-241.
- Haizhou Huang & Shang-Jin Wei, 2003.
"Monetary Policies for Developing Countries: The Role of Corruption,"
IMF Working Papers
03/183, International Monetary Fund.
- Haizhou Huang & Shang-Jin Wei, 2003. "Monetary Policies for Developing Countries: The Role of Corruption," NBER Working Papers 10093, National Bureau of Economic Research, Inc.
- Stanley Fischer, 2002. "Financial Crises and Reform of the International Financial System," NBER Working Papers 9297, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hubert Gabrisch).
If references are entirely missing, you can add them using this form.