Policy Measures to Alleviate Foreign Currency Liquidity Shortages under Aggregate Risk with Moral Hazard

Preprint OPEN
Hiroshi Fujiki;
  • Subject: Standing swap lines, Operations supplying US dollar funds outside the US, Cross-border collateral arrangements
    • jel: jel:F31 | jel:E58 | jel:F33

During the recent global financial crisis, some central banks introduced two innovative cross-border operations to deal with the problems of foreign currency liquidity shortages: domestic liquidity operations using cross-border collaterals and operations for supplying f... View more
  • References (5)

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    Castiglionesi, Fabio, Fabio Feriozzi and Guido Lorenzoni, “Financial Integration and Liquidity Crises,” mimeo, November 2009.

    Chapman, James and Antoine Martin, “Rediscounting under Aggregate Risk with Moral Hazard,” Staff Report No. 296, Federal Reserve Bank of New York, 2007.

    Chapman, James, Jonathan Chiu and Miguel Molico, “A Model of Tiered Settlement Networks,” Working Paper 2008-12, Bank of Canada, 2008.

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