International Lender of Last Resort

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

Today, we will discuss a recent Perry Mehrling paper that examines the international monetary policy response to the Covid-19 crisis:

"Where's My Swap Line?" A money View of International Lender of Last Resort

How do international lender-of-last-resort actions fit in with exchange rates? What can we understand about the economic constraints faced by our institutions? What are the limits to central-bank cooperation? Do price levels matter? How?