Webinar Video

SAFE- CEPR EFA RPN: Stabilizing Financial Markets Lending and Market Making as a Last Resort

On 21 February 2023, 03:00 PM - 04:00 PM (CEST), the SAFE Policy Center and the Centre for Economic Policy Research (CEPR), within the Research Policy Network (RPN) European Financial Architecture, organized a presentation of the report: Stabilizing Financial Markets: Lending and Market Making as a Last Resort.

Starting with the 2007-2009 financial crisis and continuing through the coronavirus (COVID-19) pandemic, central banks expanded their lending operations to restore funding liquidity and intervened in financial markets directly, purchasing securities to restore market liquidity. They expanded their toolkit, putting new facilities and programs in place quickly and in a manner that leaves little time to reflect on their structure. In this report, we examine how authorities that feel compelled to use them again might design enhanced LOLR and MMLR facilities to maximize their effectiveness while minimizing the damage that they might cause.

Speaker: Stephen G. Cecchetti: Professor and Rosen Family Chair in International Finance Brandeis International Business School and CEPR (Co-authors: Willem Buiter, Kathryn Dominguez, and Antonio Sanchez Serrano)

Comments: Frank Keane, Federal Reserve Bank of New York, and Darrell Duffie, Stanford University and CEPR

Moderator: Loriana Pelizzon, Leibniz Institute SAFE and CEPR