Javier Suarez, 27 March 2008

Lender of Last Resort interventions aren’t working. It is time for more radical thinking. This column argues for the creation of a “Emergency Bank Debt Insurance Mechanism” that would go beyond Lender of Last Resort interventions. It would short-circuit the panic logic by temporarily providing full coverage to any short-term lending explicitly supported by the insurer.

Events

CEPR Policy Research