Cover IMF Working Papers
Buy Book in Print
The International Lender of Last Resort: How Large is Large Enought?
Author:
Mr. Olivier D Jeanne
Search for other papers by Mr. Olivier D Jeanne in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2001: Issue 076
Language:
English
Publication Date:
01 May 2001
DOI:
https://doi.org/10.5089/9781451849875.001
ISBN:
9781451849875
ISSN:
1018-5941
Pages:
37
Keywords:
WP; interest rate; central bank; banking sector; credit crunch; lender of last resort; bank runs; multiple equilibria; exchange rate regime; dollarization; deposit insurance; Asian crisis; bank assets; bank collapse; international LOLR; bank run; currency depreciation; discount window; currency risk; banks' assets; solvency of bank; bank's depositor; domestic bank; Currencies; Exchange rates; Bank solvency; Currency mismatches; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1 MB) Download Epub
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 arrangements would require important changes in the global financial architecture: the first one would require a global central bank issuing an international currency, while the second one would have to be operated by an "international banking fund" closely involved in the supervision of domestic banking systems.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund