THEORIE BANCAIRE, THEORIE MONETAlRE ETPRtTEURULTIMECHEZTHORNTON
Provision of last resort facilities cannot be caracterized as temporary deviations from a non inflationary long term predefined growth rate of the money supply. We show that its analytical foundations lie in Thornton's banking theory as the latter introduces a link between credit and money. Bank crises are due to liquidity risk as well as systemic risk. As a result, the central bank has to support the whole banking system in order to preserve confidence in the payment system in which payments are made by the means of bank debts as well as to avoid moral hazard due to asymetric information which is getting worse in times of alarm
Volume (Year): (2003)
Issue (Month): 45 ()
|Contact details of provider:|| Web page: http://www.cahiersdecopo.fr/fr/|
|Order Information:|| Postal: 142 rue du faubourg Saint-Martin. 75010 Paris, France.|
When requesting a correction, please mention this item's handle: RePEc:cpo:journl:y:2003:i:45:p:41-60. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlos Andrés Vasco Correa)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.