CEU Electronic Theses and Dissertations, 2011
| Author | Robichaud, Francis Arthur Serge |
|---|---|
| Title | Lender of Last Resort in the Euro Zone: Who Will Stand Up and Do the Job? |
| Summary | The recent financial crisis has unveiled the necessity to implement a lender-of-last-resort in the euro zone. Owing to the recent awareness about the issue, there is a widespread range new studies, essays and researches covering the red-hot topic. Appropriately, this paper seeks to evaluate the propositions from the scholarly community and the actual solution established by the Member States of the euro area. To do so, the analysis relies heavily on a literature review and to a lesser extent on process tracing. The ensuing outcome distinguishes an optimal theoretical model of the nature of a pan-European lender-of-last-resort. In the end, it seems that a lender-of-last-resort in the euro zone should be centralized, acknowledged by economic agents and supporting a constructive ambiguity. At first glance, the European Central Bank appears to be the best suited institution to fulfill this task. However, the supranational nature of the European Monetary Union requires adjustments to the features of its lender-of-last-resort which precludes embracing the theoretical pattern. As a result, Europe’s economic reality entails the inclusion of new standards in last resort lending as the consideration for financial stability. |
| Supervisor | Duman, Anil |
| Department | Political Science MA |
| Full text | https://www.etd.ceu.edu/2011/robichaud_francis.pdf |
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