The global liquidity safety net : Institutional cooperation on precautionary facilities and central bank swaps

This relationship is the focus of a growing policy and academic literature, as well as the agendas of the international institutions, particularly in the aftermath of the euro crisis and experience with the “troika.” This literature generated a set of recommendations for cooperation between the IMF and the. [...] That support, third, can be tiered The IMF regionally, with each leading central bank extending coverage Development of precautionary facilities became a priority in the to qualifying countries in its area, in local currency in the case aftermath of the Asian financial crisis of 1997-1998.2 Officials of the Federal Reserve and European Central Bank (ECB), but at the IMF and in the finance ministri [...] The deputy finance be conducted together with the IMF,” “wherever appropriate ministers are preparing a matrix of economic and financial and possible.”10 During the sovereign debt crisis of 2010–2013, indicators in order to backstop the qualification assessments.7 the creditor countries within the euro area strongly preferred to include the IMF in programs. [...] For such contingencies, it is important to align the The Federal Reserve board of governors considered the work of the Fund with that of the RFAs. [...] This proposal would instead expand the the IMF and key-currency central banks marrying the FCL to coverage of the network of star-shaped clusters of swap the swap arrangements.