The Economics of Liquidity Lines between Central Banks

30 Pages Posted: 29 Mar 2022

See all articles by Saleem Bahaj

Saleem Bahaj

Bank of England

Ricardo Reis

London School of Economics & Political Science (LSE); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: March 2022

Abstract

Liquidity lines between central banks are a key part of the international financial safety net. In this review article, we lay out some of the economic questions that they pose. For some of them, research has provided some answers. For others, there is still much to discover.

Keywords: EUREP, FIMA, Financial Stability, International Currency, lender of last resort, Swap Lines

JEL Classification: E44, F33, G15

Suggested Citation

Bahaj, Saleem and Reis, Ricardo A.M.R., The Economics of Liquidity Lines between Central Banks (March 2022). CEPR Discussion Paper No. DP17122, Available at SSRN: https://ssrn.com/abstract=4069931

Saleem Bahaj (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Ricardo A.M.R. Reis

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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