Publication

This paper examines the proliferation since the 2008 global financial crisis of precautionary lending facilities and central bank swap agreements, which form part of the global network of insurance and lending instrument that countries can draw on to cope with financing difficulties. The author 1) argues that the existing system involving these facilities and agreements is suboptimal; and 2) looks at how this system can be improved through the use of the IMF’s surveillance and analytical capacities as well as by expanding the number of countries included in the system.