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Reconsidérer la fonction de PDR : problème urgent au niveau de la zone euro
[Rethinking the LOLR function: a new challenge for eurozone]

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  • Albulescu, Claudiu Tiberiu

Abstract

The financial stability can not be achieved without the existence of a lender of last resort. The Bagehot rule is not always appropriate because the complexity of the financial systems increased and because the financial turbulences have nowadays a global impact. In this study we present the recent characteristics of the lender of last resort actions and we focus on the coordination problems arisen in Eurozone in respect of this subject. The European Central Bank has only a coordination role and the interventions of the National Central Banks are constrained by the status of European System of Central Banks. This means that the Eurozone financial systems are not really benefiting from this “safety net”. The set up of a harmonised intervention framework is necessary in order to be effective at Eurozone level.

Suggested Citation

  • Albulescu, Claudiu Tiberiu, 2007. "Reconsidérer la fonction de PDR : problème urgent au niveau de la zone euro
    [Rethinking the LOLR function: a new challenge for eurozone]
    ," MPRA Paper 16583, University Library of Munich, Germany, revised 29 Dec 2008.
  • Handle: RePEc:pra:mprapa:16583
    as

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    File URL: https://mpra.ub.uni-muenchen.de/16583/1/MPRA_paper_16583.pdf
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    References listed on IDEAS

    as
    1. Fecht, Falko & Tyrell, Marcel, 2004. "Optimal lender of last resort policy in different financial systems," Discussion Paper Series 1: Economic Studies 2004,39, Deutsche Bundesbank.
    2. Allen, William A. & Wood, Geoffrey, 2006. "Defining and achieving financial stability," Journal of Financial Stability, Elsevier, vol. 2(2), pages 152-172, June.
    3. Franco Bruni & Christian de Boissieu, 2000. "Lending of Last Resort and Systemic Stability in the Eurozone," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    4. Eric Tymoigne, 2006. "Asset Prices, Financial Fragility, and Central Banking," Economics Working Paper Archive wp_456, Levy Economics Institute.
    5. Prati, A. & Schinasi, G.J., 1999. "Financial Stability in European Economic and Monetary Union," Princeton Studies in International Economics 86, International Economics Section, Departement of Economics Princeton University,.
    6. Lucía Cuadro Sáez & Sonsoles Gallego Herrero & Alicia García Herrero, 2003. "Why Do Countries Develop More Financially Than Others? The Role Of The Central Bank And Banking Supervision," Finance 0304006, EconWPA.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    lender of last resort; moral hazard; Eurozone;

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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