BOSTON, Feb. 2, 2017 /PRNewswire/ -- A report out today proposes reforms that would establish a credible framework of rules to constrain and guide emergency lending by the Federal Reserve and by fiscal authorities during a future financial crisis. The proposed framework follows five overarching rules, which would serve as the foundation on which detailed legislation should be constructed, and would properly balance the moral-hazard costs of emergency lending against the gains from avoiding systemic collapse of the financial system. The report is authored by five of the nation's leading academics and economic minds - Charles W. Calomiris of Columbia University, Douglas Holtz-Eakin of the American Action Forum, R. Glenn Hubbard of Columbia University, Allan H. Meltzer of Carnegie-Mellon University, and Hal Scott of Harvard University.
The full report may be accessed here: https://ssrn.com/abstract=2910524
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SOURCE Hal Scott; Charles W. Calomiris; Douglas Holtz-Eakin; R. Glenn Hubbard; Allan H. Meltzer