Central banks around the world, as custodians of domestic currencies, play important roles and ‘lenders of last resort' (LoLRs). This role can be summarized as central banks lending freely to solvent but illiquid firms against good collateral, at a high rate of interest. In the wake of the...

In the absence of more timely or accurate information, survey indicators of economic activity are closely watched by financial markets and policymakers alike. These include the Purchasing Managers' Indices (PMIs), which are widely regarded as important indicators of economic activity. PMIs are...