Central banks must be 'market-makers of last resort' – IMF

Monetary policy and regulation have amplified illiquidity, says IMF official

IMF headquarters in Washington DC
IMF sees liquidity constraints as a systemic risk

A senior official at the International Monetary Fund has called on central banks to serve as "market-makers of last resort" in a liquidity crisis.

José Viñals, director of the monetary and capital markets department at the IMF, said central bank policies and financial regulations had increased the chances of a prolonged liquidity shortage in financial markets.

Central banks should make contingency plans to deal with the fallout, he added.

"The question is what to do? In my view, the only thing

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