Mr. Adolfo Barajas, Andrea Deghi, Claudio Raddatz, Miss Dulani Seneviratne, Peichu Xie, and Yizhi Xu
economy central banks in May 2010 with full allotment: that is, without a prespecified limit.
The results in Table 8 show that these swap lines appear to have played a mitigating role in the international transmission of shocks to USD funding costs. Whenever they were announced in a given economy, the relationship between USD funding costs and home economy financial stress is weak and statistically insignificant (Columns 1 and 3). The same is true for when the swapline was in effect (Columns 2 and 4).
Table 8. The Effect of Swap Lines with the US Federal