04756oam 22011654 450 991097247260332120250426110109.097866138237629781462310463146231046X9781451987348145198734X9781283511315128351131297814519086261451908628(CKB)3360000000443371(EBL)3014496(SSID)ssj0000939951(PQKBManifestationID)11528459(PQKBTitleCode)TC0000939951(PQKBWorkID)10948451(PQKB)10879901(OCoLC)694141180(IMF)WPIEE2006066(MiAaPQ)EBC3014496(IMF)WPIEA2006066WPIEA2006066(EXLCZ)99336000000044337120020129d2006 uf 0engurcn|||||||||txtccrToward a Lender of First Resort /Daniel Cohen, Richard Portes1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (26 p.)IMF Working Papers"March 2006."9781451863260 1451863268 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. THE FINANCIAL CRISES OF THE 1990's WERE DIFFERENT FROM THOSE OF THE 1980's""; ""III. DEBT CRISES OF THE 1990's: A TAXONOMY""; ""IV. CONFIDENCE CRISIS AND CRISIS OF THE FUNDAMENTALS: A THEORETICAL BENCHMARK""; ""V. OUR POLICY IMPLICATIONS: COLLECTIVE ACTION CLAUSES AND A LENDER OF FIRST RESORT""; ""REFERENCES""If interest rates (country spreads) rise, debt can rapidly be subject to a snowball effect, which becomes self-fulfilling with regard to the fundamentals themselves. This is a market imperfection, because we cannot be confident that the unaided market will choose the "good" over the "bad" equilibrium. We propose a policy intervention to deal with this structural weakness in the mechanisms of international capital flows. This is based on a simple taxonomy that breaks down the origin of crises into three components: confidence (spreads and currency crisis), fundamentals (real growth rate), and economic policy (primary deficit). Theory then suggests a set of circumstances in which a lender of first resort would be desirable. The policy would seek to short-circuit confidence crises, partly by using IMF support to improve ex ante incentives. Theory also illuminates the potential role of collective action clauses in reducing the risk of self-fulfilling debt crises.IMF Working Papers; Working Paper ;No. 2006/066Capital movementsDebts, ExternalDebts, PublicFinancial crisesDebt burdenimfDebt defaultimfDebt ManagementimfDebt sustainability analysisimfDebtimfDebts, ExternalimfDebts, PublicimfEconomic & financial crises & disastersimfExports and ImportsimfFinancial CrisesimfFinancial crisesimfFinancial Risk ManagementimfInternational economicsimfInternational Lending and Debt ProblemsimfPublic debtimfPublic finance & taxationimfPublic FinanceimfSovereign DebtimfArgentinaimfCapital movements.Debts, External.Debts, Public.Financial crises.Debt burdenDebt defaultDebt ManagementDebt sustainability analysisDebtDebts, ExternalDebts, PublicEconomic & financial crises & disastersExports and ImportsFinancial CrisesFinancial crisesFinancial Risk ManagementInternational economicsInternational Lending and Debt ProblemsPublic debtPublic finance & taxationPublic FinanceSovereign DebtCohen Daniel120391Portes Richard122471International Monetary Fund.Research Dept.DcWaIMFBOOK9910972472603321Toward a Lender of First Resort4371775UNINA