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Timing of international bailouts /
This paper proposes that international rescue financing should not be provided to a country where a crisis first occurs, but rather to any country that suffers a subsequent crisis. Such a timing-based lending facility can be Pareto-superior to both laissez-faire and existing international crisis len...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Autor Corporativo: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Washington, D.C. :
International Monetary Fund, Research Dept.,
2004.
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| Colección: | IMF working paper ;
WP/04/9. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper proposes that international rescue financing should not be provided to a country where a crisis first occurs, but rather to any country that suffers a subsequent crisis. Such a timing-based lending facility can be Pareto-superior to both laissez-faire and existing international crisis lending facilities, when domestic governments have more information on their own economies than does the international lender of last resort. The new facility mitigates moral hazard owing to information asymmetry by not rescuing the first-hit country. At the same time, it limits crisis contagion by rescuing countries in subsequent crises. Even in the presence of common shocks, the timing-based facility can reduce global risks of crisis because it induces countries to undertake greater crisis-prevention efforts so as not to become the first country hit. |
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| Descripción Física: | 1 online resource (41 pages) |
| Bibliografía: | Includes bibliographical references (pages 39-41). |
| ISBN: | 9781451890808 145189080X 1462389457 9781462389452 1452756368 9781452756363 128109286X 9781281092861 9786613775917 6613775916 |
| ISSN: | 2227-8885 ; |