This paper proposes that international rescue financing should not be provided to a country where a crisis first occurs, but rather to any country that suffers a subsequent crisis. Such a timing-based lending facility can be Pareto-superior to both laissez-faire and existing international crisis...

Intro -- Contents -- I. INTRODUCTION -- II. PROPOSAL FOR A NEW CRISIS-PREVENTION FACILITY -- III. THE BASIC MODEL -- IV. LAISSEZ-FAIRE -- V. EXISTING CRISIS-LENDING FACILITIES -- VI. TIMING-BASED CRISIS-LENDING FACILITY -- VII. EXTENSIONS AND DISCUSSIONS -- VIII. CONCLUSION -- APPENDIX I --...

This paper proposes that international rescue financing should not be provided to a country where a crisis first occurs, but rather to any country that suffers a subsequent crisis. Such a timing-based lending facility can be Pareto-superior to both laissez-faire and existing international crisis...