A Model of the Lender of Last Resort:
This paper develops a model of the lender of last resort. It provides an analytical basis for "too big too fail" and a rationale for "constructive ambiguity". Key results are that if contagion (moral hazard) is the main concern, the Central Bank (CB) will have an excessive (littl...
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1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1999
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Schriftenreihe: | IMF Working Papers
Working Paper No. 99/39 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 URL des Erstveröffentlichers |
Zusammenfassung: | This paper develops a model of the lender of last resort. It provides an analytical basis for "too big too fail" and a rationale for "constructive ambiguity". Key results are that if contagion (moral hazard) is the main concern, the Central Bank (CB) will have an excessive (little) incentive to rescue banks and the resulting equilibrium risk level is high (low). When both contagion and moral hazard are jointly analyzed, the CB's incentives to rescue are only slightly weaker than with contagion alone. The CB's optimal policy may be non-monotonic in bank size |
Beschreibung: | 1 Online-Ressource (33 p) |
ISBN: | 1451845812 9781451845815 |
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spelling | Huang, Haizhou Verfasser aut A Model of the Lender of Last Resort Huang, Haizhou Washington, D.C International Monetary Fund 1999 1 Online-Ressource (33 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 99/39 This paper develops a model of the lender of last resort. It provides an analytical basis for "too big too fail" and a rationale for "constructive ambiguity". Key results are that if contagion (moral hazard) is the main concern, the Central Bank (CB) will have an excessive (little) incentive to rescue banks and the resulting equilibrium risk level is high (low). When both contagion and moral hazard are jointly analyzed, the CB's incentives to rescue are only slightly weaker than with contagion alone. The CB's optimal policy may be non-monotonic in bank size Online-Ausg Goodhart, C. A. E. Sonstige oth http://elibrary.imf.org/view/IMF001/00069-9781451845815/00069-9781451845815/00069-9781451845815.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Huang, Haizhou A Model of the Lender of Last Resort |
title | A Model of the Lender of Last Resort |
title_auth | A Model of the Lender of Last Resort |
title_exact_search | A Model of the Lender of Last Resort |
title_exact_search_txtP | A Model of the Lender of Last Resort |
title_full | A Model of the Lender of Last Resort Huang, Haizhou |
title_fullStr | A Model of the Lender of Last Resort Huang, Haizhou |
title_full_unstemmed | A Model of the Lender of Last Resort Huang, Haizhou |
title_short | A Model of the Lender of Last Resort |
title_sort | a model of the lender of last resort |
url | http://elibrary.imf.org/view/IMF001/00069-9781451845815/00069-9781451845815/00069-9781451845815.xml |
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