This Paper considers how an international lender of last resort can prevent self-fulfilling banking and currency crises … injects international liquidity into financial markets, and one in which its resources are used to back domestic banking … limited ‘international banking fund’. This fund, however, would have to be closely involved in the supervision of domestic …

crises. It is claimed that any such concept must integrate systemic events in banking and financial markets as well as in the … related payment and settlement systems. At the heart of systemic risk are contagion effects, various forms of external effects … rigorous models of bank and payment system contagion have now been developed, although a general theoretical paradigm is still …

frequently used in dealing with banking crises, namely, forbearance from prudential regulations, extension of blanket deposit …

range of crises, including banking, balance-of-payments, and sovereign debt crises. It reviews the typical patterns prior to …

theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking …

broadens the set of fundamentals to nonmonetary variables, including unemployment or the state of the banking sector, and even …

pessimistic about other asset classes as well. This means that idiosyncratic risk can create contagion and snowball into systemic …