Monetary Policy Cooperation/Coordination and Global Financial Crises in Historical Perspective

Michael Bordo

No 27898, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The COVID-19 pandemic spawned a global liquidity crisis in March 2020. The global liquidity crisis was alleviated by the Federal Reserve and other advanced country central banks cooperating by extending the swap lines they developed in the Global Financial Crisis 2007-2008. Central bank cooperation in 2020 evolved from a two-century history across several monetary regimes that is surveyed in this paper. I find that in monetary regimes which are rules-based cooperation was most successful. International currency swaps developed to manage exchange rates during the Bretton Woods era have evolved into the leading tool to manage international liquidity crises. The swap network can be viewed as a step in the direction of a global financial safety net.

JEL-codes: E58 F33 N20 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-cba, nep-his, nep-mac and nep-mon
Note: IFM ME
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Citations: View citations in EconPapers (2)

Published as Michael David Bordo, 2021. "Monetary Policy Cooperation/Coordination and Global Financial Crises in Historical Perspective," Open Economies Review, vol 32(3), pages 587-611.

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