Central bank or International Monetary Fund lending should be regarded as a line of credit, analogous to private line … contractual mechanisms utilized by private line-of-credit providers are not effective for a central bank whose primary mission … limit its lending reach. We consider in some detail five broad approaches to a central bank's commitment problem: good …

This consideration of central bank lending as a publicly provided line of credit begins by describing how private line …-of-credit contracts control moral hazard and limit lending to insolvent borrowers. The fundamental problem for a central bank is to …. Lessons from the historical acquisition of credibility for low inflation suggest a particular scenario by which a central bank …