Jump to ContentJump to Main Navigation
Managing Currency Crises in Emerging Markets$
Users without a subscription are not able to see the full content.

Michael P. Dooley and Jeffrey A. Frankel

Print publication date: 2003

Print ISBN-13: 9780226155401

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226155425.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 18 May 2022

The International Lender of Last Resort

The International Lender of Last Resort

How Large Is Large Enough?

(p.89) 4 The International Lender of Last Resort
Managing Currency Crises in Emerging Markets
Olivier Jeanne, Charles Wyplosz
University of Chicago Press

This chapter examines whether an international lender of last resort (ILOLR) would be a useful addition to the international financial architecture. It analyzes whether an ILOLR can function effectively as a fund with limited and predetermined resources using a model of an emerging economy vulnerable to international liquidity crises. The findings reveal that required size of the ILOLR depends on how its resources are used by the domestic authorities. This chapter explains that if the LOLR backs a guarantee of the foreign currency liabilities of domestic banks, its resources do not need to be larger than the liquidity gap in the domestic banking sector.

Keywords:   ILOLR, international financial architecture, emerging economy, liquidity crises, domestic banks, liquidity gap

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.