How Long to Read Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings

How Long Does it Take to Read Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings?

It takes the average reader 1 hour and 1 minute to read Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings by Ms. Mitali Das

Assuming a reading speed of 250 words per minute. Learn more

Description

This paper explores how non-U.S. central banks behave when firms in their economies engage in currency mismatch, borrowing more heavily in dollars than justified by their operating exposures. We begin by documenting that, in a panel of 53 countries, central bank holdings of dollar reserves are significantly correlated with the dollar-denominated bank borrowing of their non-financial corporate sectors, controlling for a number of known covariates of reserve accumulation. We then build a model in which the central bank can deal with private-sector mismatch, and the associated risk of a domestic financial crisis, in two ways: (i) by imposing ex ante financial regulations such as bank capital requirements; or (ii) by building a stockpile of dollar reserves that allow it to serve as an ex post dollar lender of last resort. The model highlights a novel externality: individual central banks may tend to over-accumulate dollar reserves, relative to what a global planner would choose. This is because individual central banks do not internalize that their hoarding of reserves exacerbates a global scarcity of dollar-denominated safe assets, which lowers dollar interest rates and encourages firms to increase the currency mismatch of their liabilities. Relative to the decentralized outcome, a global planner may prefer stricter financial regulation (e.g., higher bank capital requirements) and reduced holdings of dollar reserves.

How long is Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings?

Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings by Ms. Mitali Das is 61 pages long, and a total of 15,311 words.

This makes it 21% the length of the average book. It also has 19% more words than the average book.

How Long Does it Take to Read Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings Aloud?

The average oral reading speed is 183 words per minute. This means it takes 1 hour and 23 minutes to read Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings aloud.

What Reading Level is Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings?

Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings?

Central Banks as Dollar Lenders of Last Resort: Implications for Regulation and Reserve Holdings by Ms. Mitali Das is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

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