Liquidity in the financial crisis: New insights on the lender of last resort

Pierre-Olivier Weill, Guillaume Rocheteau, Ricardo Lagos, 16 December 2009

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Under every central banker’s bed is a copy of “Lombard Street” by Walter Bagehot. Published in 1873, it argues that the central bank should act as a lender of last resort during crises to ensure that financial intermediaries have the resources to provide liquidity in asset markets.

Topics: Monetary policy
Tags: Central Banks, Federal Reserve, global crisis, ponetary policy

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