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dc.titleGlobal Financial Safety Nets: Where Do We Go from Here?
dc.contributor.authorFernández-Arias, Eduardo
dc.contributor.authorLevy Yeyati, Eduardo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2011-09-12T00:00:00
dc.date.issue2010-11-01T00:00:00
dc.description.abstractAn analysis of the performance of the global financial safety net during the 2008-2009 crisis, and an evaluation of its new components, indicates that, from an emerging markets perspective, the net remains full of holes despite recent stitches. This paper therefore proposes an effective and workable international lender of last resort (ILLR) for systemic liquidity crises based on: i) an automatic trigger to access the facility; ii) unilateral country pre-qualification to the facility during Article IV consultations; and iii) liquidity funded by the world's "issuers of last resort". These principles would support a reliable and broad-based ILLR without the carrying costs associated with inefficient reserve hoarding, which would actually work as an effective preventive facility with minimal room for moral hazard.
dc.format.extent39
dc.identifier.doihttp://dx.doi.org/10.18235/0011213
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Global-Financial-Safety-Nets-Where-Do-We-Go-from-Here.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Crisis and Structural Adjustement
dc.subjectFinancial Market
dc.subject.jelcodeF33 - International Monetary Arrangements and Institutions
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeF42 - International Policy Coordination and Transmission
dc.subject.jelcodeF53 - International Agreements and Observance • International Organizations
dc.subject.keywordsLiquidity Crisis, International Lender of Last Resort, Safety Net
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1089
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