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Central Bank Involvement in Banking Crises in Latin America
By:Mr. Luis Ignacio Jácome
Published on 2008-05-01 by International Monetary Fund

This paper reviews the nature of central bank involvement in 26 episodes of financial disturbance and crises in Latin America from the mid-1990s onwards. It finds that, except in a handful of cases, large amounts of central bank money were used to cope with large and small crises alike. Pouring central bank money into the financial system generally derailed monetary policy, fueled further macroeconomic unrest, and contributed to simultaneous currency crises, thereby aggravating financial instability. In contrast, when central bank money issuance was restricted and bank resolution was timely executed, financial disturbances were handled with less economic cost. However, this strategy worked provided appropriate institutional arrangements were in place, which highlights the importance of building a suitable framework for preventing and managing banking crises.
This Book was ranked at 21 by Google Books for keyword Currency crisis.
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Book which was published by International Monetary Fund since 2008-05-01 have ISBNs, ISBN 13 Code is 9781451914474 and ISBN 10 Code is 1451914474
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