EconPapers    
Economics at your fingertips  
 

Can swap line arrangements help solve the Triffin dilemma? How?

Elena Seghezza ()

The World Economy, 2018, vol. 41, issue 10, 2691-2708

Abstract: The recent massive rise in the currency reserves of emerging countries has once again brought the Triffin dilemma to the fore, albeit different to the past. At all the events, new tools for the creation of international liquidity emerged during the global financial crisis of 2007–08, including bilateral swap line arrangements (BSAs). These arrangements ultimately constitute a form of lending of last resort. Therefore, for emerging countries, they can substitute currency reserves and help resolve the Triffin dilemma. In this manner, the stipulation of BSAs by advanced countries, although motivated by domestic reasons, contributes to international financial stability. Providing access to these arrangements automatically would contradict the principle of constructive ambiguity and the discretion that should be at the base of the lending of last resort also at the international level.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/twec.12669

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:41:y:2018:i:10:p:2691-2708

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-10-03
Handle: RePEc:bla:worlde:v:41:y:2018:i:10:p:2691-2708