Moral Hazard in Hierarchical International Agreements: Bilateral Swap Agreements, Reserve Accumulation, and the Private Sector

• In Event: Lightning Talk: International and Comparative Political Economy

Brief Overview

This study's empirical question is whether bilateral swap agreements lead to moral hazard. I find lower reserves-to-GDP ratios in protected central banks, while the private sectors become more cautious and make up for this increased risk.

Author

• Qi Liu, Duke University