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Full-Text Articles in Behavioral Economics
Bailed Out With A Little Help From My Friends: Social Similarity And Currency Swaps During The 2008 Crisis, Timothy Marple
Bailed Out With A Little Help From My Friends: Social Similarity And Currency Swaps During The 2008 Crisis, Timothy Marple
Masters Theses
One policy reaction of the Federal Reserve to the 2008 financial crisis was the extension of currency swap lines to various foreign central banks; this constituted the global transfer of billions of US dollars of wealth and exhibited the role of the US as a global lender of last resorts. Some have attempted to explain the supply of these lines as a function of risk mitigation for domestic US banks with foreign holdings, but no one has yet investigated the social dynamics of this phenomenon. In recognizing that the global demand for emergency liquidity was greater than the Federal Reserve’s …