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The Eastern Caribbean Central Bank : Challenges to an Effective Lender of Last Resort / Pablo Druck, Mario Dehesa.
- Format:
- Book
- Government document
- Author/Creator:
- Druck, Pablo.
- Series:
- IMF Working Papers; Working Paper ; No. 2008/214
- IMF working paper ; WP/08/214
- IMF Working Papers
- Language:
- English
- Subjects (All):
- Eastern Caribbean Central Bank.
- Lenders of last resort--Caribbean Area--Econometric models.
- Lenders of last resort.
- Banks and banking--Caribbean Area--Econometric models.
- Banks and banking.
- Financial crises--Caribbean Area--Econometric models.
- Financial crises.
- Physical Description:
- 1 online resource (20 p.)
- Edition:
- 1st ed.
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2008.
- Language Note:
- English
- Summary:
- The paper analyzes the challenges for the Eastern Caribbean Central Bank (ECCB) to be an effective lender of last resort (LOLR) as part of a modern banking crisis resolution framework. The main results from the theoretical model of the ECCB's institutional arrangement are that the majority of currency union members may veto emergency lending in the case of a member-specific shock, as such lending may endanger the stability of the currency board (by lowering the central bank's international reserves, thus raising devaluation risk). However, in the presence of contagion across countries, all currency union members have a vested interest in liquidity supply from the central bank. A key policy recommendation is that currency union members need a stronger fiscal position to continue to access international financial markets and sustain the exchange rate peg.
- Contents:
- Contents; I. Introduction; II. The LOLR Facility and its Monetary Effects; III. The ECCB's Institutional Architecture; IV. The Model; Tables; 1. Numerical Simulation of the Liquidity Assistance Model (Two Countries); Box; 1. The CFA Franc Arrangement; V. Conclusions; 2. Liquidity Assistance Model-Including Foreign Credit Line (FCL) (Two Countries); References
- Notes:
- Description based upon print version of record.
- Includes bibliographical references.
- Description based on online resource; title from PDF front page (ebrary, viewed February 27, 2014).
- ISBN:
- 9786612841651
- 9781462384044
- 1462384048
- 9781452707709
- 1452707707
- 9781451870725
- 1451870728
- 9781282841659
- 1282841653
- OCLC:
- 762895006
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