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IMF Economic Review

, Volume 63, Issue 2, pp 353–372 | Cite as

The Evolution of the Federal Reserve Swap Lines since 1962

  • Michael D Bordo
  • Owen F Humpage
  • Anna J Schwartz
Article

Abstract

This paper describes the evolution of the Federal Reserve’s swap lines from their inception in 1962 as a mechanism to forestall claims on U.S gold reserves under Bretton Woods to a means of extending emergency dollar liquidity during the Great Recession. It describes the Federal Reserve’s successes and failures and argues that swaps calm crisis situations by both supplementing foreign countries’ dollar reserves and by signaling central-bank cooperation. The paper shows how swaps exposed the Federal Reserve to conditionality and raised fears that they bypassed the Congressional appropriations process.

JEL Classifications

F3 N2 

Supplementary material

41308_2015_BFimfer201511_MOESM1_ESM.docx (15 kb)
Supplementary material, approximately 15 KB.
41308_2015_BFimfer201511_MOESM2_ESM.xlsx (83 kb)
Supplementary material, approximately 85 KB.

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Copyright information

© International Monetary Fund 2015

Authors and Affiliations

  • Michael D Bordo
  • Owen F Humpage
  • Anna J Schwartz

There are no affiliations available

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