Pierre-Olivier Weill, Guillaume Rocheteau, Ricardo Lagos, Wednesday, December 16, 2009 - 00:00

Following the last run on a British bank over 130 years ago, Walter Bagehot argued that central banks should act as a lender of last resort. While such policies have been followed by central banks in today’s crisis, this column updates the recommendation by suggesting central banks should also act as a “liquidity provider of last resort”.

CEPR Policy Research