Central Bank Emergency Support to Securities Markets

Author/Editor:

Darryl King ; Luis Brandao-Marques ; Kelly Eckhold ; Peter Lindner ; Diarmuid Murphy

Publication Date:

July 10, 2017

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

Series:

Working Paper No. 17/152

Subject:

English

Publication Date:

July 10, 2017

ISBN/ISSN:

9781484305850/1018-5941

Stock No:

WPIEA2017152

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

50

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