Financial Crises, Contagion, and the Lender of Last Resort: A Reader
- Goodhart, Charles(London School of Economics)Illing, Gerhard(University of Munich)
Financial crises, often of an apparently contagious nature, have become more frequent over the last two decades than they were previously. The monetary authorities, especially central banks, and, in the international context, the International Monetary Fund, have had to decide how to handle them. This has revived interest in the analysis of the role of a Lender of Last Resort (LOLR). On the one hand, such LOLR support actions have been accused of contributing to the currently increased frequency of (systemic) crises. By providing a safety net for banking activities, they are said to encourage excessive risk taking (moral hazard), thus provoking the very crises they are supposed to prevent. On the other hand, the (surprisingly) fast recovery experienced after (most of) these crises may, perhaps, be attributed to the safety net provided by LOLR facilities, which may have dampened real effects by containing contagion. Currently, the need for, and the appropriate design of, a LOLR both at the national and international level is hotly debated. There are fierce controversies about how to handle crisis management. This book assembles a selection of the best available studies in this field, and illuminates both sides of the debate. After a substantial review of the literature, Part I Iooks back to the historical evolution of thought on the conduct of LOLR. Parts II and III review contemporary contributions to the debate. Part IV explores the international aspects of these issues. Overall, this Reader provides comprehensive and authoritative coverage of the contending views on how the authorities might respond to financial crises. It will appeal to a broad readership including financial and monetary economists, commentators on financial subjects, (central) bankers, financial regulators, and ministries of finance. Contributors to this volume - Charles Goodhart, London School of Economics and Political Science Gerhard Illing, University of Munich Xavier Freixas, Universitat Pompeu Fabra, Barcelona Curzio Giannini, Banca d'Italia, Roma Glenn Hoggarth, Bank of England Farouk Soussa, Bank of England Henry Thornton (deceased) Walter Bagehot (deceased) Thomas Humphrey, Federal Reserve Bank of Richmond Robert Keleher, Federal Reserve Bank of Atlanta Michael Bordo, Rutgers University Richard Timberlake, University of Georgia Marvin Goodfriend, Federal Reserve Bank of Richmond Robert King, Boston University George Kaufmann, Loyola University Fred Hirsch, University of Warwick Robert Solow, Massachusetts Institute of Technology M. J. Flannery, University of Florida Olivier De Bandt, Banque de France Philipp Hartmann, European Central Bank Douglas W. Diamond, University of Chicago Philip Dybvig, Washington University Franklin Allen, University of Pennsylvania Douglas Gale, New York University Y. Chen, National Taiwan University Bruno M. Parigi, University of Padua Jean-Charles Rochet, Universite des Sciences Sociales, Toulouse Forrest Capie, City University, London Anna Schwartz, NBER, New York R. Brealey, London Business School Stanley Fischer, IMF, Washington, DC
To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
This book is provided by Oxford University Press in its series OUP Catalogue with number 9780199247219 and published in 2002. ISBN: 9780199247219 Order: http://ukcatalogue.oup.com/product/9780199247219.do Handle: RePEc:oxp:obooks:9780199247219 Contact details of provider: Web page: http://www.oup.com/
Order Information: Web: http://www.oup.com/
- Cao, Jin & Illing, Gerhard, 2008.
"Endogenous systemic liquidity risk,"
CFS Working Paper Series
2008/23, Center for Financial Studies (CFS).
- Germana Corrado, 2005. "Liquidity Shocks, Banking System Failures, and Supranational Lending of Last Resort Facilities," Annals of Economics and Finance, Society for AEF, vol. 6(1), pages 1-24, May.
- Ruiz-Porras, Antonio, 2008. "Financial structure, financial development and banking fragility: International evidence," MPRA Paper 12124, University Library of Munich, Germany.
- Nikolaou, Kleopatra, 2009. "Liquidity (risk) concepts: definitions and interactions," Working Paper Series 1008, European Central Bank.
When requesting a correction, please mention this item's handle: RePEc:oxp:obooks:9780199247219. 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: (Economics Book Marketing)
If references are entirely missing, you can add them using this form.
Follow series, journals, authors & more
New papers by email
Subscribe to new additions to RePEc
Public profiles for Economics researchers
Various rankings of research in Economics & related fields
Who was a student of whom, using RePEc
Curated articles & papers on various economics topics
Upload your paper to be listed on RePEc and IDEAS
Blog aggregator for economics research
Cases of plagiarism in Economics
Job Market Papers
RePEc working paper series dedicated to the job market
Pretend you are at the helm of an economics department
Services from the StL Fed
Data, research, apps & more from the St. Louis Fed