1 option
Trade Finance in A Liquidity Crisis / Ellingsen, Tore
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Ellingsen, Tore
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Access to Finance.
- Asymmetric information.
- Bank credit.
- Borrower.
- Contract enforcement.
- Credit market.
- Credit policies.
- Credit subsidies.
- Debt Markets.
- Economic Theory and Research.
- Emerging Markets.
- Finance and Financial Sector Development.
- Financial markets.
- Government interventions.
- International Bank.
- International Economics & Trade.
- International Trade.
- International transactions.
- Law and Development.
- Liquidity.
- Liquidity Crisis.
- Loan.
- Moral hazard.
- Private Sector Development.
- Trade credit.
- Trade Finance.
- Trade Law.
- Transaction.
- Local Subjects:
- Access to Finance.
- Asymmetric information.
- Bank credit.
- Borrower.
- Contract enforcement.
- Credit market.
- Credit policies.
- Credit subsidies.
- Debt Markets.
- Economic Theory and Research.
- Emerging Markets.
- Finance and Financial Sector Development.
- Financial markets.
- Government interventions.
- International Bank.
- International Economics & Trade.
- International Trade.
- International transactions.
- Law and Development.
- Liquidity.
- Liquidity Crisis.
- Loan.
- Moral hazard.
- Private Sector Development.
- Trade credit.
- Trade Finance.
- Trade Law.
- Transaction.
- Physical Description:
- 1 online resource (24 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2009
- System Details:
- data file
- Summary:
- The paper discusses the reasons for supporting international trade finance during a liquidity crisis. Targeted interventions are justified when prices are rigid and sellers insist on immediate payment due to fears of strategic default. In this case, buyers who reject the seller's offer fail to internalize the seller's benefit from additional liquidity. A general infusion of credit will not facilitate the beneficial transaction, but an infusion targeted at the buyer's bank's trade finance supply will do so. Since there is a need for interventions in one country to benefit actors in another, international coordination is called for.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.