TY - UNPB
T1 - From Bazooka to Backstop: The Political Economy of Standing Swap Facilities
AU - Richtmann, Mathis L.
AU - Steininger, Lea
PY - 2023/2
Y1 - 2023/2
N2 - The permanent international lender of last resort consists of a swap line network between six major central banks, centering around the US Federal Reserve. Arguably, this network is a solution to a long debated problem as it provides public emergency liquidity provision to the world's largest financial market, the Eurodollar market. Drawing on exclusive interviews with monetary technocrats as well as a textual analysis of Federal Open Market Committee meeting transcripts over the course of 14 years, we reconstruct how this facility came into being. Building on Kalyanpur (2017) and Braun (2015), we develop an interpretative framework of bricolage to set the formation into context: In times of crises, central bankers rely on retrospection, experimentation, and creative re-deployment to develop their tools. However, in non-crises times, those tools prevail which offer what we coin 'bureaucratic familiarity'.
AB - The permanent international lender of last resort consists of a swap line network between six major central banks, centering around the US Federal Reserve. Arguably, this network is a solution to a long debated problem as it provides public emergency liquidity provision to the world's largest financial market, the Eurodollar market. Drawing on exclusive interviews with monetary technocrats as well as a textual analysis of Federal Open Market Committee meeting transcripts over the course of 14 years, we reconstruct how this facility came into being. Building on Kalyanpur (2017) and Braun (2015), we develop an interpretative framework of bricolage to set the formation into context: In times of crises, central bankers rely on retrospection, experimentation, and creative re-deployment to develop their tools. However, in non-crises times, those tools prevail which offer what we coin 'bureaucratic familiarity'.
KW - Standing Swap Facilities
KW - lender of last resort
KW - International Monetary Policy
KW - Central Bank Cooperation
KW - Monetary Technocrats
U2 - 10.57938/da8fd8d7-e3e2-4083-a20c-0cc950bb6988
DO - 10.57938/da8fd8d7-e3e2-4083-a20c-0cc950bb6988
M3 - WU Working Paper
T3 - Department of Economics Working Paper Series
BT - From Bazooka to Backstop: The Political Economy of Standing Swap Facilities
PB - WU Vienna University of Economics and Business
ER -