Central Bank Response to the 2007-08 Financial Market Turbulence : Experiences and Lessons Drawn.

Central Bank Response to the 2007-08 Financial Market Turbulence : Experiences and Lessons Drawn.

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Bibliographic Details
Author / Creator:	Stella, Peter, author.
Imprint:	Washington : International Monetary Fund, Sept. 2008.
Description:	1 online resource (25 pages)
Language:	English
Series:	IMF Working Papers IMF Working Papers.
Subject:	Banks and banking, Central. Monetary policy. Financial crises. Banks and banking, Central. Financial crises. Monetary policy.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12503171

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Other authors / contributors:	Shimizu, Seiichi, author. Gray, Simon, author.
ISBN:	9781451915211 1451915217
Summary:	Annotation The paper reviews the policy response of major central banks during the 200708 financial market turbulence and suggests that there is scope for convergence among central bank operational frameworks through the adoption of those elements that proved most instrumental in calming markets. These include (i) rapid liquidity provision to a broad range of counterparties; (ii) a congruence of collateral policies with market developments; (iii) an ability to increase the average maturity of liquidity provision; and (iv) central bank cooperation to facilitate the use of cross-border collateral. Flexible use of open market operations was needed to avoid the stigma associated with traditional standing facilities, and allowed central banks to maintain at least basic market functioning. Having a flexible framework, however, requires careful consideration of the desirable limits to market intervention.
Other form:	Print version: Stella, Peter. Central Bank Response to the 2007-08 Financial Market Turbulence: Experiences and Lessons Drawn. Washington : International Monetary Fund, ©2008 9781451870688

Description
Summary:	The paper reviews the policy response of major central banks during the 2007-08 financial market turbulence and suggests that there is scope for convergence among central bank operational frameworks through the adoption of those elements that proved most instrumental in calming markets. These include (i) rapid liquidity provision to a broad range of counterparties; (ii) a congruence of collateral policies with market developments; (iii) an ability to increase the average maturity of liquidity provision; and (iv) central bank cooperation to facilitate the use of cross-border collateral. Flexible use of open market operations was needed to avoid the stigma associated with traditional standing facilities, and allowed central banks to maintain at least basic market functioning. Having a flexible framework, however, requires careful consideration of the desirable limits to market intervention.
Physical Description:	1 online resource (25 pages)
ISBN:	9781451915211 1451915217