The Leading eBooks Store Online 4,363,412 members ⚫ 1,467,645 ebooks

New to eBooks.com?

Learn more

Central Bank Involvement in Banking Crises in Latin America

Central Bank Involvement in Banking Crises in Latin America by Luis Ignacio Jácome
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
This paper reviews the nature of central bank involvement in 26 episodes of financial disturbance and crises in Latin America from the mid-1990s onwards. It finds that, except in a handful of cases, large amounts of central bank money were used to cope with large and small crises alike. Pouring central bank money into the financial system generally derailed monetary policy, fueled further macroeconomic unrest, and contributed to simultaneous currency crises, thereby aggravating financial instability. In contrast, when central bank money issuance was restricted and bank resolution was timely executed, financial disturbances were handled with less economic cost. However, this strategy worked provided appropriate institutional arrangements were in place, which highlights the importance of building a suitable framework for preventing and managing banking crises.
International Monetary Fund; May 2008
49 pages; ISBN 9781451992335
Read online, or download in secure EPUB or secure PDF format
Title: Central Bank Involvement in Banking Crises in Latin America
Author: Luis Ignacio Jácome