Unintended Consequences of LOLR Facilities: The Case of Illiquid Leverage
---- Acknowledgments ----
This paper was prepared for the IMF Economic Review Conference in Honor of Stanley Fischer. We are grateful to Pierre-Olivier Gourinchas and Ayhan Kose (editors), Ricardo Caballero (discussant), three anonymous referees, and participants at the International Monetary Fund's 14th Jacques Polak Conference in honor of Stanley Fischer on November 7-8, 2013, for helpful comments. We thank Katherine Waldock for outstanding research assistance. All errors remain our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
---- Disclosure of Financial Relationships for Bruce Tuckman ----
Bruce Tuckman is an independent member of the Interest Rate Swap Risk Committee at the CME.