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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 which its resources are used to back domestic banking safety nets. Both …
Persistent link: https://www.econbiz.de/10013226161
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 which its resources are used to back domestic banking safety nets. Both …
Persistent link: https://www.econbiz.de/10012470339
Persistent link: https://www.econbiz.de/10013423458
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 which its resources are used to back domestic banking safety nets. Both …
Persistent link: https://www.econbiz.de/10014403614
Persistent link: https://www.econbiz.de/10013447422
In the months preceding the failure of Lehman Brothers in September 2008, banks were willing to pay a premium over the Federal Reserve's discount window (DW) rate to participate in the much less flexible Term Auction Facility (TAF). We empirically test the predictions of a new signalling model...
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