Bank Bailouts : Moral Hazard vs. Value Effect /

This paper shows that a central bank, by announcing and committing ex-ante to a bailout policy that is contingent on the realization of certain states of nature (for example on the occurrence of an adverse macroeconomic shock), creates a risk-reducing 'value effect' that more than outweigh...

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Detalhes bibliográficos
Autor principal: Levy Yeyati, Eduardo
Outros Autores: Cordella, Tito
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 1999.
coleção:IMF Working Papers; Working Paper ; No. 1999/106
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper shows that a central bank, by announcing and committing ex-ante to a bailout policy that is contingent on the realization of certain states of nature (for example on the occurrence of an adverse macroeconomic shock), creates a risk-reducing 'value effect' that more than outweighs the moral hazard component of such a policy.
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Descrição Física:1 online resource (30 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students