Liquidity

By Viral Acharya, David Backus, and Raghu Sundaram  

There is a tendency in a crisis to throw out the rulebook: we are in a unique situation, some will say, and that calls for unique measures. In fact, financial crises are recurring events whose history has taught us some clear lessons. 

By Morris Goldstein

With a global recession in prospect, now is the time to strengthen the provisions of the International Monetary Fund’s old Compensatory Financing Facility and to put it back into action.