Front Matter Page
Monetary and Financial Systems Department
Contents
I. Introduction
II. Can Liquidity Be Borrowed?
A. Self-Insurance versus External Insurane
B. Private Insurane
C. Public Insurance
D. Taking Stock
III. The Case for Liquidity Requirements
A. Background
B. Some First Principles
C. Policy Implications
IV. Should Circuit Breakers Be Institutionalized?
A. Why Circuit Breakers?
B. Which Deposits Should Be Subjected to the CBR?
C. Who Should “Pull the Trigger” and When?
D. What Happens the Day After?
V. Conclusions
References
Table
1. International Reserves
Figure
1. Liquidity Premium
Boxes
1. The Argentine Contingent Credit Line
2. The Mexican Contingent Credit Line
3. Introducing CBR-Type Measures Under Crises
4. CBR and Suspension of Convertibility in the Free Banking Era
5. A More Recent Example of Pre-Programmed CBR: The Chilean “Narrow Bank” Safety Net
Appendix
I. A Model of Lender of Last Resort (LOLR) and Bank Demand for Dollar Liquidity