Central banking for financial stability Some lessons from the recent instability in the US and euro area
Central banks have had an important role in maintaining financial stability through their lender of last resort role. As lender of last resort, the central bank is given enormous power which is normally tempered by a variety of limits. In the most recent crises in both the US and euro area, the Federal Reserve and European Central Bank (ECB) have come under enormous pressure to take lender of last resort actions that exceed these normal bounds. This paper reviews the experience of these two central banks and draws some implications for future policy.
Volume (Year): 8 (2012)
Issue (Month): 3 (August)
|Contact details of provider:|| Web page: http://www.mof.go.jp/pri/|
More information through EDIRC
References listed on IDEAS
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.:
- Adrian Blundell-Wignall & Patrick Slovik, 2010. "The EU Stress Test and Sovereign Debt Exposures," OECD Working Papers on Finance, Insurance and Private Pensions 4, OECD Publishing.
- Gary Gorton, 2009.
"Information, Liquidity, and the (Ongoing) Panic of 2007,"
American Economic Review,
American Economic Association, vol. 99(2), pages 567-72, May.
- Gary B. Gorton, 2009. "Information, Liquidity, and the (Ongoing) Panic of 2007," NBER Working Papers 14649, National Bureau of Economic Research, Inc.
- K. Alec Chrystal & Cletus C. Coughlin, 1992. "How the 1992 legislation will affect European financial services," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 62-77.
- Brueckner, Jan K. & Calem, Paul S. & Nakamura, Leonard I., 2012.
"Subprime mortgages and the housing bubble,"
Journal of Urban Economics,
Elsevier, vol. 71(2), pages 230-243.
- Kristopher Gerardi & Andreas Lehnert & Shane M. Sherlund & Paul Willen, 2008.
"Making Sense of the Subprime Crisis,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 39(2 (Fall)), pages 69-159.
- Kristopher S. Gerardi & Andreas Lehnert & Shane M. Sherlund & Paul S. Willen, 2009. "Making sense of the subprime crisis," Public Policy Discussion Paper 09-1, Federal Reserve Bank of Boston.
- Kristopher S. Gerardi & Andreas Lehnert & Shane M. Sherlund & Paul S. Willen, 2009. "Making sense of the subprime crisis," FRB Atlanta Working Paper 2009-02, Federal Reserve Bank of Atlanta.
- Jerome L. Stein, 2011.
"The Diversity of Debt Crises in Europe,"
CESifo Working Paper Series
3348, CESifo Group Munich.
- Jerome L. Stein, 2011. "The Diversity of Debt Crises in Europe," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(4), pages 44-51, December.
- Jerome L. Stein, 2011. "The Diversity of Debt Crises in Europe," Cato Journal, Cato Journal, Cato Institute, vol. 31(2), pages 199-215, Spring/Su.
- Robert Lindley, 2008. "Reducing foreign exchange settlement risk," BIS Quarterly Review, Bank for International Settlements, September.
- Larry D. Wall, 2010.
"Prudential discipline for financial firms: micro, macro, and market structures,"
FRB Atlanta Working Paper
2010-09, Federal Reserve Bank of Atlanta.
- Larry D. Wall, 2010. "Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures," Working Papers id:3040, eSocialSciences.
- Wall, Larry D., 2009. "Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures," ADBI Working Papers 176, Asian Development Bank Institute.
- John B. Taylor, 2009. "The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong," NBER Working Papers 14631, National Bureau of Economic Research, Inc.
- Christopher J. Mayer & Karen M. Pence & Shane M. Sherlund, 2008.
"The rise in mortgage defaults,"
Finance and Economics Discussion Series
2008-59, Board of Governors of the Federal Reserve System (U.S.).
- Elisabeth Ledrut & Christian Upper, 2007. "Changing post-trading arrangements for OTC derivatives," BIS Quarterly Review, Bank for International Settlements, December.
- Larry D. Wall, 1993.
"Too-big-to-fail after FDICIA,"
Federal Reserve Bank of Atlanta, issue Jan, pages 1-14.
- Robert A. Eisenbeis & Larry D. Wall, 1998.
"Financial regulatory structure and the resolution of conflicting goals,"
Federal Reserve Bank of San Francisco, issue Sep.
- Larry Wall & Robert Eisenbeis, 1999. "Financial Regulatory Structure and the Resolution of Conflicting Goals," Journal of Financial Services Research, Springer;Western Finance Association, vol. 16(2), pages 223-245, December.
- Larry D. Wall & Robert A. Eisenbeis, 1999. "Financial regulatory structure and the resolution of conflicting goals," FRB Atlanta Working Paper 99-12, Federal Reserve Bank of Atlanta.
- Stephen G. Cecchetti, 2009. "Crisis and Responses: The Federal Reserve in the Early Stages of the Financial Crisis," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 51-75, Winter.
- Fumio Akiyoshi, 2009. "Banking panics, bank failures, and the lender of last resort: the Showa Depression of 1930--1932," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 776-800, October.
- Francisco Carballo-Cruz, 2011. "Causes and Consequences of the Spanish Economic Crisis: Why the Recovery is Taken so Long?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(3), pages 309-328, September.
- Martin S. Feldstein, 2011. "The Euro and European Economic Conditions," NBER Working Papers 17617, National Bureau of Economic Research, Inc.
- Viral V. Acharya & Matthew Richardson & Stijn Van Nieuwerburgh & Lawrence J. White, 2011. "Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance," Economics Books, Princeton University Press, edition 1, number 9400.
- Feldstein, Martin S., 2011. "The Euro and European Economic Conditions," Scholarly Articles 9949289, Harvard University Department of Economics.
- Kelly, Morgan, 2010. "Whatever Happened to Ireland?," CEPR Discussion Papers 7811, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:mof:journl:ppr017b. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Policy Research Institute)
If references are entirely missing, you can add them using this form.