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International Lending of Last Resort and Moral Hazard: A Model of the IMF's Catalytic Finance

Corsetti, Giancarlo; Guimarães, Bernardo; Roubini, Nouriel - C.E.P.R. Discussion Papers - 2004

The provision of liquidity by international institutions such as the IMF to countries experiencing balance of payment … problems could prevent liquidity runs but could also cause moral hazard distortions: expecting to be bailed out by the IMF … and policies by three classes of optimizing agents: international investors, the local government and the IMF. We show how …

Persistent link: https://www.econbiz.de/10005067528

Debt Maturity and the Global Financial Architecture

Jeanne, Olivier - C.E.P.R. Discussion Papers - 2000

The paper starts from the premise that the debate on the ‘new architecture’ of the international financial system should be based on a theory that endogenizes the structure of countries' external liabilities. I present a model in which the maturity of a country's external sovereign debt is...

Persistent link: https://www.econbiz.de/10005666408

New Open Economy Macroeconomics

Corsetti, Giancarlo - C.E.P.R. Discussion Papers - 2007

'New open economy macroeconomics' (NOEM) refers to a body of literature embracing a new theoretical framework for policy analysis in open economy, aiming to overcome the limitations of the Mundell-Fleming model while preserving the empirical wisdom and policy friendliness of traditional...

Persistent link: https://www.econbiz.de/10005789191

Options For The Exchange Rate Policies Of The EU Accession Countries (And Other Emerging Market Economies)

Bofinger, Peter; Wollmershaeuser, Timo - C.E.P.R. Discussion Papers - 2000

We develop an institutional framework for central banks that try to pursue a stability-oriented monetary policy with the strategy of exchange rate targeting. Recent experience shows that a crucial element of this approach is to avoid destabilizing capital inflows. Policy makers can exert...

Persistent link: https://www.econbiz.de/10005791576

Interpreting the ERM Crisis: Country-Specific and Systemic Issues

Buiter, Willem H.; Corsetti, Giancarlo; Pesenti, Paolo - C.E.P.R. Discussion Papers - 1996

Most interpretations of the Exchange Rate Mechanism crisis of 1992/3 ignore the key role played by structural policy spillovers among European countries, and overlook the effects of coordination (or lack thereof) of monetary and exchange rate policies among the countries making up the periphery...

Persistent link: https://www.econbiz.de/10005123505

`Excessive Deficits': Sense and Nonsense in the Treaty of Maastricht

Buiter, Willem H.; Corsetti, Giancarlo; Roubini, Nouriel - C.E.P.R. Discussion Papers - 1992

In this paper we evaluate internationally agreed limits on public sector debt and deficits, such as those agreed by the EC countries in the Treaty of Maastricht as preconditions for membership in a monetary union. These fiscal convergence criteria require that general government budget deficits...

Persistent link: https://www.econbiz.de/10005123755

A Centre-Periphery Model of Monetary Coordination and Exchange Rate Crises

Buiter, Willem H.; Corsetti, Giancarlo; Pesenti, Paolo - C.E.P.R. Discussion Papers - 1995

The paper analyses the modalities and consequences of a breakdown of cooperation between the monetary authorities of inflation-prone periphery countries that use an exchange rate peg as an anti-inflationary device, when the centre is hit by an aggregate demand shock. Cooperation in the periphery...

Persistent link: https://www.econbiz.de/10005124066

The International Lender of Last Resort: How Large is Large Enough?

Jeanne, Olivier; Wyplosz, Charles - C.E.P.R. Discussion Papers - 2001

This Paper considers how an international lender of last resort can prevent self-fulfilling banking and currency crises in emerging economies. We compare two different arrangements: one in which the international lender of last resort injects international liquidity into financial markets, and...

Persistent link: https://www.econbiz.de/10005136622

An Interest Rate Defence of a Fixed Exchange Rate?

Flood, Robert P; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2000

Defending a government's exchange-rate commitment with active interest rate policy is not an option in the Krugman-Flood-Garber (KFG) model of speculative attacks. In that model, the interest rate is the passive reflection of currency-depreciation expectations. In this paper we show how to adapt...

Persistent link: https://www.econbiz.de/10005497948

A Multilateral Payments Union for Eastern Europe?

Bofinger, Peter - C.E.P.R. Discussion Papers - 1990

The paper analyzes the role of a multilateral payments union (PU) between East European countries (EEPU) as an intermediate solution in the process to full convertibility. After a description of the main functions of a PU, which is based on the historical model of the European Payments Union, it...

Persistent link: https://www.econbiz.de/10005497971