measured by falls in international short-term indebtedness and total bank deposits, was smaller than that of 1931. However …, central bank liquidity provision was larger in 2008-09 than in 1931, when it had been constrained in many countries by the … gold standard. Liquidity shortages destroyed the international monetary system in 1931. By contrast, central bank liquidity …

stability. It has also led to a revival of practical central bank co-operation. This paper explains how things have changed. The … main innovation in central bank cooperation during this crisis was the emergency provision of international liquidity … through bilateral central bank swap facilities, which have evolved to form interconnected swap networks. We discuss the …