Global liquidity provision is highly procyclical. The recent financial crisis has resulted in a flight to safety, with … meet the liquidity needs of dysfunctional financial markets. As the eligibility criteria for central bank borrowing have … bank has the ability to create abundant official liquidity, there should be some limits to its support for the financial …

Central banks responded with exceptional liquidity support during the financial crisis to prevent a systemic meltdown …. They broadened their tool kit and extended liquidity support to nonbanks and key financial markets. Many want central banks … to embrace this expanded role as "market maker of last resort" going forward. This would provide a liquidity backstop for …