The Lender of Last Resort: Some Historical Insights

Bordo, Michael D.

doi:10.3386/w3011

Cited by 18 publications

(19 citation statements)

References 15 publications

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“…35 Some economists think that such a separation is impossible (Goodfriend and King (1988)), although in the 18th-century Thornton and Bagehot tried to distinguish between them. 25 last resort (for surveys see Bordo (1989) or Denise (2001)): (i) in the private banking sector the LOLR function was carried out by private clearing house associations (White (1999)) or by socalled branch banking (in the case of the US); or the LOLR was imported by a foreign central bank (Goodhart (1987) argues that this was the case in the period of free banking in Scotland),…”

Section: Strictly Limited Lending Of Last Resortmentioning

confidence: 99%

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Lending of First versus Lending of Last Resort: The Bulgarian Financial Crisis of 1996/1997

Berlemann

Nenovsky

2004

Comp Econ Stud

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Section: Strictly Limited Lending Of Last Resortmentioning

confidence: 99%

“…According to Bagehot a LOLR should announce in advance a policy of free 38 See also Bordo (1989) and Humphrey (1986).…”

Section: Strictly Limited Lending Of Last Resortmentioning

confidence: 99%

Lending of First versus Lending of Last Resort: The Bulgarian Financial Crisis of 1996/1997

Berlemann

Nenovsky

2004

Comp Econ Stud

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“…The tools reviewed, capital requirements (CR) and lending of last resort (LLR) have been in the arsenal of monetary authorities for a long time; the second one was deployed with success by the Bank of England as early as two centuries ago. 4 The context for this evaluation is an endowment economy of the type studied by Kehoe and Levine (1993), and Alvarez and Jermann (2000). As individual incomes fluctuate, heterogeneous households attempt to smooth consumption by lending and borrowing without commitment to repay loans.…”

Section: Introduction: Issues Policies Literature 1issuesmentioning

confidence: 99%

Credit Policy in times of Financial Distress

Azariadis

2014

Journal of Macroeconomics

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The papers and commentaries presented at the conference addressed many important issues related to the functioning of the euro area. Our hope is that these contributions will help improve understanding of the nature of Europe's monetary union, the underpinnings of its crisis, and the changes that are needed so that crises will be prevented in the future. The papers examined two main sets of issues. One group of papers, adopting a union-wide perspective, assessed the aspects of the euro area's institutional architecture that, with the benefit of hindsight, may have contributed to the crisis, and the policy responses to the crisis at the union level. A second group of papers focused on developments in three crisis countries-Greece, Ireland, and Portugal.

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“…The lender of last resort can safeguard the medium of exchange but does not change depositor incentives with regard to individual banks under the first-in-line first-to-withdraw constraint. 5 SeeCalomiris and Gorton (2000),Bordo (1992) andWicker (1996). 6 See Demirguc-Kunt andLevine (2001) andLevine (2006).…”

mentioning

confidence: 99%