Show simple item record

dc.contributor.authorCORSETTI, Giancarlo
dc.contributor.authorGUIMARAES, Bernardo
dc.contributor.authorROUBINI, Nouriel
dc.date.accessioned2007-01-29T15:33:53Z
dc.date.available2007-01-29T15:33:53Z
dc.date.issued2006
dc.identifier.citationJournal of Monetary Economics, 2006, 53, 2, 441-471en
dc.identifier.urihttp://hdl.handle.net/1814/6680
dc.description.abstractThis paper analyzes the trade-off between official liquidity provision and debtor moral hazard in international financial crises. In the model, crises are caused by the interaction of bad fundamentals, self-fulfilling runs and policies by three classes of optimizing agents: international investors, the local government and an international official lender. Limited contingent liquidity support helps to prevent liquidity runs by raising the number of investors willing to lend to the country for any given fundamentals, i.e., it can have catalytic effects. The influence of the official lender is increasing in the size of its interventions and the precision of its information. Unlike the conventional view stressing debtor moral hazard, our model identifies circumstances in which official lending actually strengthens a government's incentive to implement desirable but costly policies.en
dc.language.isoenen
dc.relation.ispartofJournal of Monetary Economics
dc.titleInternational Lending of Last Resort and Moral Hazard: A Model of IMF’s Catalytic Financeen
dc.typeArticleen
dc.neeo.contributorCORSETTI|Giancarlo|aut|EUI70002
dc.neeo.contributorGUIMARAES|Bernardo|aut|
dc.neeo.contributorROUBINI|Nouriel|aut|
dc.identifier.volume53
dc.identifier.startpage441
dc.identifier.endpage471
eui.subscribe.skiptrue


Files associated with this item

FilesSizeFormatView

There are no files associated with this item.

This item appears in the following Collection(s)

Show simple item record