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Reconsidérer la fonction de PDR : problème urgent au niveau de la zone euro
[Rethinking the LOLR function: a new challenge for eurozone]

Author

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  • Albulescu, Claudiu Tiberiu

Abstract

The financial stability can not be achieved without the existence of a lender of last resort. The Bagehot rule is not always appropriate because the complexity of the financial systems increased and because the financial turbulences have nowadays a global impact. In this study we present the recent characteristics of the lender of last resort actions and we focus on the coordination problems arisen in Eurozone in respect of this subject. The European Central Bank has only a coordination role and the interventions of the National Central Banks are constrained by the status of European System of Central Banks. This means that the Eurozone financial systems are not really benefiting from this “safety net”. The set up of a harmonised intervention framework is necessary in order to be effective at Eurozone level.

Suggested Citation

  • Albulescu, Claudiu Tiberiu, 2007. "Reconsidérer la fonction de PDR : problème urgent au niveau de la zone euro [Rethinking the LOLR function: a new challenge for eurozone]," MPRA Paper 16583, University Library of Munich, Germany, revised 29 Dec 2008.
    • Handle: RePEc:pra:mprapa:16583
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    lender of last resort; moral hazard; Eurozone;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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