Toward a Lender of First Resort / / Daniel Cohen, Richard Portes

• Autore: Cohen Daniel
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2006
• Edizione: 1st ed.
• Descrizione fisica: 1 online resource (26 p.)
• Soggetto topico: Capital movements; Debts, External; Debts, Public; Financial crises; Exports and Imports; Financial Risk Management; Public Finance; International Lending and Debt Problems; Financial Crises; Debt; Debt Management; Sovereign Debt; International economics; Economic & financial crises & disasters; Public finance & taxation; Debt default; Public debt; Debt sustainability analysis; Debt burden
• Soggetto geografico: Argentina
• Altri autori: PortesRichard
• Note generali: "March 2006."
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: ""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""
• Sommario/riassunto: 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.
• Titolo autorizzato: Toward a Lender of First Resort
• ISBN: 1-4623-1046-X; 1-4519-8734-X; 1-283-51131-2; 9786613823762; 1-4519-0862-8
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910814666003321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2006/066