The Last Resource Frontier

The Federal Reserve Board is no longer the lender of last resort, but the lender of first resort.

And what of the Constitution, That bully of last resort?

This is the doctrine of lender of last resort.

No Safe Havens for Dirty Money

Our current situation requires not a lender of last resort, but a spender of last resort, and that can only be governments.

The United States had become the world s consumer of last resort.

The central bank is the lender of last resort.

They should be considered treatments of last resort.

Only the retail subsidiaries would be permitted to rely on the central bank for lender of last resort support.

But the safe haven status of US government securities is an illusion.

In particular, they did not see the Fed as a lender of last resort.

Nigeria s role in providing a safe haven for Taylor is peculiar.

Refugee status is a humanitarian shelter.

For Afghans, the simple home is a sanctuary. The real problems begin outside it.

Indeed, China now looks like it can play the role of growth anchor.

To many Jews, it is the one state that will always offer refuge.

But it does not have automatic access to a European lender of last resort.

It was not just Europe that benefited from China s willingness to take on the mantle of lender of last resort.

If the right to a remedy was not respected in practice, an international mechanism became the remedy of first, rather than last, resort.

Al Qaeda lost its base in Afghanistan when the Taliban government that had provided it sanctuary was ousted from power.

Paragraph 2 of the Resolution also requires States to prevent the movement of terrorists and the establishment of safe havens.

The Chinese even began developing a port on the Burmese coast, far closer to Calcutta than to Canton. And the generals began providing safe havens and arms to a motley assortment of anti Indian rebel movements that would wreak havoc in India s northeastern states and retreat to sanctuaries in the newly renamed Myanmar.

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What recourse do creditor countries have if the debtor countries become the majority and decide to increase spending?

Only central banks typically lenders of last resort lean against the hurricane strength winds.

Traditionally, central banks have been the lenders of last resort, but now they are becoming the lenders of first and only resort.

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Indeed, America s current account position strengthened despite the dollar s appreciation in the face of safe haven demand.

By not closing down such tax havens, we actively encourage corrupt elites in these countries to continue cheating their populations.

Legislation or regulation aimed at restoring faith in the political class should be a last, not a first, resort.

But if the ECB takes over entirely the role of lender of last resort, it will ultimately become insolvent itself.

Because emerging economies have relatively weak asset markets, their citizens seek safe haven in advanced country government bonds.

Major Programme G

Major Programme H

Major Programme I

Main institutional support

(Principal investigator A. Coradini, INAF IFSI, Rome)

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Some form of mutualization of public debt, carried out under stringent rules.

More than half of the Southern countries' debts are in the form of private capital deposited in tax havens controlled by the banks of the North.

Later, Maurice Obstfeld pointed out that, in addition to fiscal transfers, a currency union needs clearly defined rules for the lender of last resort.

The idea is that the US government would serve as buyer of last resort for the junk debt that the private sector has not been able to price.