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Real Effects of Stabilizing Private Money Creation
Xu, Chenzi; Yang, He - National Bureau of Economic Research - 2022
We show that decentralized privately created money with unstable values can hinder the traded, more transaction-friction sensitive, sector of the economy. We do so in the context of the NationalBanking Act of 1864 in the United States that created a new federally-regulated, fully-backed currency...
Persistent link: https://www.econbiz.de/10013210088
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Central Banks as Dollar Lenders of Last Resort : Implications for Regulation and Reserve Holdings
Das, Mitali; Gopinath, Gita; Kim, Taehoon; Stein, Jeremy C. - National Bureau of Economic Research - 2022
This paper explores how non-U.S. central banks behave when firms in their economies engage in currency mismatch, borrowing more heavily in dollars than justified by their operating exposures. We begin by documenting that, in a panel of 53 countries, central bank holdings of dollar reserves are...
Persistent link: https://www.econbiz.de/10013477280
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The International Lender of Last Resort : How Large is Large Enough?
Jeanne, Olivier - 2001
This paper considers how an international lender of last resort (LOLR) can prevent self-fulfilling banking and currency crises in emerging economies. We compare two different arrangements: one in which the international LOLR injects liquidity into international financial markets, and one in...
Persistent link: https://www.econbiz.de/10012470339
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Financial Crises, Dollarization, and Lending of Last Resort in Open Economies
Bocola, Luigi - 2017
Foreign currency borrowing is perceived as a source of financial instability in emerging markets. We propose a theory where liability dollarization arises from an insurance motive of domestic savers. Because financial crises are associated with currency depreciations, savers are reluctant to...
Persistent link: https://www.econbiz.de/10012453729
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Can a Lender of Last Resort Stabilize Financial Markets? Lessons from the Founding of the Fed
Bernstein, Asaf - 2008
last resort can stabilize financial markets. Following the Panic of 1907, Congress passed two measures that established a …
Persistent link: https://www.econbiz.de/10012464225
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International Lending of Last Resort and Moral Hazard : A Model of IMF's Catalytic Finance
Corsetti, Giancarlo - 2003
It is often argued that the provision of liquidity by the international institutions such as the IMF to countries experiencing balance of payment problems can have catalytic effects on the behavior of international financial markets, i.e., it can reduce the scale of liquidity runs by inducing...
Persistent link: https://www.econbiz.de/10012468569
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Fighting the Last War : Economists on the Lender of Last Resort
Grossman, Richard S. - 2015
century through the panic of 2008. We find that typically the most influential economists "fight the last war": formulating … with the financial crises that hit Britain between the end of the Napoleonic Wars and the panic of 1866. Fighting the last …
Persistent link: https://www.econbiz.de/10012457834
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Unintended Consequences of LOLR Facilities : The Case of Illiquid Leverage
Acharya, Viral V. - 2013
Several mechanisms that might address this unintended consequence of LOLR facili--ties are explored: condition LOLR access and terms on the financial health of borrowers; condition LOLR access and terms on asset sales and deleveraging; and, especially, in--stead of supporting troubled financial...
Persistent link: https://www.econbiz.de/10012458890
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Interbank Networks and the Interregional Transmission of Financial Crises : Evidence from the Panic of 1907
Jaremski, Matthew S.; Wheelock, David C. - National Bureau of Economic Research - 2023
This paper provides quantitative evidence on interbank transmission of financial distress in the Panic of 1907 and … ensuing recession. Originating in New York City, the panic led to payment suspensions and emergency currency issuance in many … closer ties to banks at the center of the panic, ii) banks with such links were more likely to close in the panic and …
Persistent link: https://www.econbiz.de/10014287370
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Restoring Confidence in Troubled Financial Institutions After a Financial Crisis
Calomiris, Charles W.; Carlson, Mark - National Bureau of Economic Research - 2022
After an unprecedented number of banks suspended operations during the Panic of 1893, the head regulator of banks …
Persistent link: https://www.econbiz.de/10013334444