Showing 1 - 10 of 353
run on the currency if the central bank attempts to act as a lender of last resort. …
Persistent link: https://www.econbiz.de/10010397417
A country's financial system is internationally illiquid if its potential short-term obligations in foreign currency exceed the amount of foreign currency it can have access to in short notice. This condition may be necessary and sufficient for financial crises and/or exchange rate collapses...
Persistent link: https://www.econbiz.de/10010397536
the Panic of 1907. But why did the successful movement for creating a U.S. central bank follow the Panic of 1907 and not …
Persistent link: https://www.econbiz.de/10010397472
-Dybvig model. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism … system implements the social optimum and eliminates runs, provided the exchange rate and central bank lending policies are …
Persistent link: https://www.econbiz.de/10010397526
Credit rationing is a common feature of most developing economies. In response to it, the governments of these countries often operate extensive credit programs and lend, either directly or indirectly, to the private sector. We analyze the macroeconomic consequences of a typical government...
Persistent link: https://www.econbiz.de/10010397530
A number of developing countries have adopted deficit-finance regimes involving multiple reserve requirements. One question the previous literature on this phenomenon has not addressed is whether multiple-reserves regimes can improve on regimes involving single-currency-reserve requirements if...
Persistent link: https://www.econbiz.de/10010397531
Arguably, eliminating suspensions of payments--periods when banks jointly refuse to convert their liabilities into outside money or other assets--was an important impetus for creating the Federal Reserve. Friedman and Schwartz suggest that a suspension in 1930 would have decreased the severity...
Persistent link: https://www.econbiz.de/10010397581
We present new evidence on de facto euroization in eleven Central, Eastern and Southeastern European countries … Central European– countries are low and economically insignificant. Evidently, high euroization bears various significant …
Persistent link: https://www.econbiz.de/10013370076
Recently there have been a number of recommendations to increase the role of subordinated debt (SND) in satisfying bank capital requirements as a preferred means to discipline the risk-taking behavior of systemically important banks. One such proposal recommended using SND yield spreads as the...
Persistent link: https://www.econbiz.de/10010397404
This paper reviews the extant empirical studies of financial innovation. Adopting broad criteria, the authors found just two dozen studies, over half of which (fourteen) had been conducted since 2000. Since some financial innovations are examined by more than one study, only fourteen distinct...
Persistent link: https://www.econbiz.de/10010397405