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Markets despite their skills and knowledge are apparently destined to repeat history Over the last 30 years many financial crises have taken place carrying out a high degree of commonality excessive exuberance poor regulatory supervision unreliable accounting and a mass sense of infallibility Latin American countries for example were accumulating cheap foreign debt for years and then realized in 1982 that they could no longer repay them which worsened the world recession that was occurring in the late 1970s By definition a financial crisis is a sudden actual or potential breakdown of an important part of the credit system associated with a loss of confidence in the standing of some financial institution and assets or in the expectation of the debtors insolvency In these scenarios a need for an intervention is necessary It is usually the lender of last resort that is in charge of this task offering loans to banks or institutions that are experiencing financial difficulties As crisis started to affect not only the national economy but the global one too talks about an international lender of last resort started taking place In this paper we will first see how the global economy became more interdependent and how the need of an international lender of last resort emerged second we will talk about the 2007-08 crisis and how the FED played a major role of an international lender of last resort and finally we will shed the light on the role of the IMF as a prospect for an international lender of last resort Since the 1980s the world economy has witnessed a convergence between the rich and the poor countries This process began with the success of the less-industrialized countries in opening up to the world economy In fact there has been a noticeable
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