NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The International Lender of Last Resort: How Large is Large Enough?

Olivier Jeanne, Charles Wyplosz

NBER Working Paper No. 8381
Issued in July 2001
NBER Program(s):   IFM

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.

download in pdf format
   (223 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8381

Published:

Users who downloaded this paper also downloaded* these:
Jeanne and Wyplosz The International Lender of Last Resort. How Large Is Large Enough?
Bernstein, Hughson, and Weidenmier w14422 Can a Lender of Last Resort Stabilize Financial Markets? Lessons from the Founding of the Fed
Bordo w3011 The Lender of Last Resort: Some Historical Insights
Corsetti, Guimaraes, and Roubini w10125 International Lending of Last Resort and Moral Hazard: A Model of IMF's Catalytic Finance
Corsetti, Pesenti, and Roubini w6833 What Caused the Asian Currency and Financial Crisis? Part I: A Macroeconomic Overview
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us