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Liquidity Regulation: Rationales, Benefits and Costs
Published online by Cambridge University Press: 01 January 2020
Abstract
This paper reviews the market failures that may justify the need for liquidity regulation, assesses whether liquidity regulation is a necessary complement to Lender of Last Resort (LOLR) policies, capital regulation and prompt corrective action, surveys the available evidence on the net benefits of liquidity regulation, and concludes by outlining research directions useful to improve bank regulation design.
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- Research Articles
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- Copyright
- Copyright © 2016 National Institute of Economic and Social Research
Footnotes
The views expressed in this paper are exclusively those of the author and do not necessarily represent those of the IMF or IMF policy.
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