Implementing an International Lender of Last Resort

Arbeitspapier

Current research discusses various general frameworks for installing an international lender of last resort (ILOLR). However, it remains unclear how the ILOLR should actually operate. This paper discusses six different options of construction of an ILOLR who supports central banks in the case of currency crises. The paper concludes that the cost efficient version of the ILOLR would be direct interventions by the IMF by the use of IMF resources and the right to dispose additional reserves from central banks. The paper considers measures of cost efficiency, such as cost of borrowing, intervention, and sterilization and moral hazard problems.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWH Discussion Papers ; No. 20/2006

Classification and Topics

• Classification: Wirtschaft ; International Monetary Arrangements and Institutions ; International Economic Order and Integration
• Subject: International-Lender-of-Last-Resort ; Internationaler Währungsfonds ; Währungskrisen ; International Lender of Last Resort ; International Monetary Fund ; currency crises

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Knedlik, Tobias
• Event: Veröffentlichung
• (who): Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
• (where): Halle (Saale)
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/23765
• URN: urn:nbn:de:gbv:3:2-4237
• Last update: 10.03.2025, 11:43 AM CET