From Turmoil to Crisis

From Turmoil to Crisis

Auteur : Naohiko Baba, Frank Packer

Date de publication : 2009

Éditeur : Bank for International Settlements, Monetary and Economic Department

Nombre de pages : 37

Résumé du livre

"This paper investigates dislocations in the foreign exchange (FX) swap market between the US dollar and three major European currencies. After the failure of Lehman Brothers in September 2008, deviations from covered interest parity (CIP) were negatively associated with the creditworthiness of US financial institutions (as well as that of European institutions), consistent with the deepening of a dollar liquidity problem into a global phenomenon. US dollar term funding auctions by the ECB, SNB, and BoE, as well as the US Federal Reserve commitment to provide unlimited dollar swap lines are found to have ameliorated the FX swap market dislocations."- -Abstract.

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