exchange reserves, which, in spite of a high cost of carry, has been widely practiced in emerging economies since the 1997 Asian financial crisis, the 1998 Russian financial crisis and the 1998 bailout of Long-Term Capital Management. An ILLR might also provide a cushion against shocks and volatility, as well as reduce the likelihood of financial panic within countries and financial contagion across countries. Moreover, an ILLR might allow a country's Central Bank to shift their holdings from liquid but low-yielding foreign exchange reserve to less liquid but longer-term and higher-yield assets. Finally, having an ILLR with established rules and procedures in place before a crisis might make collective action problems less likely than in the case of an exclusively ex post response. Proposals and characteristics The role and suggested functions of an ILLR in a crisis like domestic lender of last resort, as set forth by Walter Bagehot and subsequent authors, are the following: i) lending against any marketable collateral (finance) valued at its value in normal times; ii) lending in large amounts (on demand) at terms steeper than at market terms in normal times; and iii) establish the above principles ex-ante and applying them automatically. The functions of an ILLR could be undertaken by a new institution such as a global central bank, but current proposals have generally suggested the creation of a fund or facility within an existing institution, particularly the International Monetary Fund. A leading role has also occasionally been suggested for the Bank for International Settlements. Less consensus exists on whether an ILLR should additionally assume the functions of a crisis manager by coordinating the responses of other relevant actors. Disagreement likewise exists regarding whether an ILLR should directly provide international liquidity to a country's financial institutions or should only provide liquidity to institutions serving as a country's financial safety nets. Based on the traditional doctrine, four desirable aspects of a feasible ILLR can be set forth: Large size: Sufficient to meet short-term financial obligations and avoid a collapse (either of demand or supply); Expediency: Timely, immediate disbursements to prevent crises rather than cure their consequences or, if already underway, mitigate and resolve them at minimum cost; Certainty: Automatic (i.e., non-discretionary) financial assistance according to pre-arranged mechanisms and conditions with adequate repayment period to match extraordinary financial need; uncertainty undermines confidence that ILLR will do its job, leads to defensive positioning of stakeholders in anticipation