Central Bank Co-Operation and International Liquidity in the Financial Crisis of 2008-2009

Abstract

BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The papers are on subjects of topical interest and are technical in character. The views expressed in them are those of their authors and not necessarily the views of the BIS.

Changing Central Bank Transparency in Central and Eastern Europe During the Financial Crisis

“…This is true for the estimates for the short rate obtained on the long sample. 13 Therefore, this finding supports the presence of unobserved decline of transparency during the financial turmoil.…”

The ‘2008 Crisis’ in an economic history perspective: Looking at the twentieth century

“…Although foreign exchange issues, for example, were not at the heart of the current crisis, private banks with huge amounts of foreign lending, including intra-firm transactions, found themselves unable to cover billions in foreign exchange positions. They turned to central banks in their currency zone, who in turn had to rely on foreign exchange swaps from other central banks to provide the necessary forward cover (Moessner & Allen, 2010). Almost all crises are in some way connected with irrational or corrupt behaviour.…”

The Evolution of the Federal Reserve Swap Lines since 1962

“…12, 14). In the end, however, most of the countries that received swap lines (in dollars or in other currencies) did not seem to hold sufficient reserves to meet the liquidity demand of the financial crisis (Obstfeld, Shambaugh, and Taylor, 2009;Moessner and Allen, 2010).…”