Central Bank Emergency Support to Securities Markets

This paper considers the central bank mandate with respect to financial stability and identifies the links to the functioning of securities markets. It argues that while emergency support to securities markets is an important part of the crisis management response, a high bar should be set for its u...

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Main Author: King, Darryl
Other Authors: Brandao-Marques, Luis, Eckhold, Kelly
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2017, 2017
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Summary:This paper considers the central bank mandate with respect to financial stability and identifies the links to the functioning of securities markets. It argues that while emergency support to securities markets is an important part of the crisis management response, a high bar should be set for its use. Importantly, it should be used only as part of a comprehensive policy package. The paper considers what types of securities markets may be important for financial stability, what market conditions could trigger emergency support measures, and how programs can be designed to restore market functioning while minimizing moral hazard
Physical Description:50 p.
ISBN:148430585X
9781484305850