IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this book

Financial Crises, Contagion, and the Lender of Last Resort: A Reader

Listed editor(s):
  • Goodhart, Charles
    (London School of Economics)

  • Illing, Gerhard
    (University of Munich)

Registered editor(s):

Financial crises, often of an apparently contagious nature, have become more frequent over the last two decades than they were previously. The monetary authorities, especially central banks, and, in the international context, the International Monetary Fund, have had to decide how to handle them. This has revived interest in the analysis of the role of a Lender of Last Resort (LOLR). On the one hand, such LOLR support actions have been accused of contributing to the currently increased frequency of (systemic) crises. By providing a safety net for banking activities, they are said to encourage excessive risk taking (moral hazard), thus provoking the very crises they are supposed to prevent. On the other hand, the (surprisingly) fast recovery experienced after (most of) these crises may, perhaps, be attributed to the safety net provided by LOLR facilities, which may have dampened real effects by containing contagion. Currently, the need for, and the appropriate design of, a LOLR both at the national and international level is hotly debated. There are fierce controversies about how to handle crisis management. This book assembles a selection of the best available studies in this field, and illuminates both sides of the debate. After a substantial review of the literature, Part I Iooks back to the historical evolution of thought on the conduct of LOLR. Parts II and III review contemporary contributions to the debate. Part IV explores the international aspects of these issues. Overall, this Reader provides comprehensive and authoritative coverage of the contending views on how the authorities might respond to financial crises. It will appeal to a broad readership including financial and monetary economists, commentators on financial subjects, (central) bankers, financial regulators, and ministries of finance. Contributors to this volume - Charles Goodhart, London School of Economics and Political Science Gerhard Illing, University of Munich Xavier Freixas, Universitat Pompeu Fabra, Barcelona Curzio Giannini, Banca d'Italia, Roma Glenn Hoggarth, Bank of England Farouk Soussa, Bank of England Henry Thornton (deceased) Walter Bagehot (deceased) Thomas Humphrey, Federal Reserve Bank of Richmond Robert Keleher, Federal Reserve Bank of Atlanta Michael Bordo, Rutgers University Richard Timberlake, University of Georgia Marvin Goodfriend, Federal Reserve Bank of Richmond Robert King, Boston University George Kaufmann, Loyola University Fred Hirsch, University of Warwick Robert Solow, Massachusetts Institute of Technology M. J. Flannery, University of Florida Olivier De Bandt, Banque de France Philipp Hartmann, European Central Bank Douglas W. Diamond, University of Chicago Philip Dybvig, Washington University Franklin Allen, University of Pennsylvania Douglas Gale, New York University Y. Chen, National Taiwan University Bruno M. Parigi, University of Padua Jean-Charles Rochet, Universite des Sciences Sociales, Toulouse Forrest Capie, City University, London Anna Schwartz, NBER, New York R. Brealey, London Business School Stanley Fischer, IMF, Washington, DC

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

in new window

This book is provided by Oxford University Press in its series OUP Catalogue with number 9780199247219 and published in 2002.
ISBN: 9780199247219
Handle: RePEc:oxp:obooks:9780199247219
Contact details of provider: Web page:

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oxp:obooks:9780199247219. 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: (Economics Book Marketing)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.