On the Need for an International Lender of Last Resort

摘要: The frequency, virulence, and global spread of financial crises in emerging market countries the last five years—Mexico 1994, with subsequent tequila contagion Latin America for a day or two east Asia; Asia 1997 1998, spreading crisis within region; Russia itself affected by Asian contagion, Russian to addition eastern Europe rest former Soviet Union— has led most serious rethinking structure international system since breakdown Bretton Woods 1971. In coming months years, governments institutions will be putting place series changes designed strengthen system. vision that underlies proposals reform is capital markets should operate as well better domestic markets. To express goal this way drive home point volatility cannot banished, asset prices inevitably move sharply, ways are significantly intercorrelated. But while always us, we can surely do reducing frequency intensity crises, extent than have years.