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Permanence and innovation in central banking policy for financial stability

Author

Listed:
  • Michel Aglietta

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Laurence Scialom

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

In the first part of this paperer, we emphasize the adaptability and continuity of the lender-of-last-resort doctrine beyond the diversity of financial structures from the 19th century to the present day.. The second part deals with the global credit crisis and the analysis of the central banks' innovative practices during the 2007-2008 financial crisis. We highlight that the lender of last resort's role is not confined to providing emergency liquidity. It aims to provide orderly deleveraging in the financial system in order to preserve the financial intermediation process. Our conclusion underlines that the crisis management has become global and strategic. It opens the way to a major regulatory and supervisory reform.

Suggested Citation

  • Michel Aglietta & Laurence Scialom, 2008. "Permanence and innovation in central banking policy for financial stability," Working Papers hal-04140738, HAL.
    • Handle: RePEc:hal:wpaper:hal-04140738
    Note: View the original document on HAL open archive server: https://hal.science/hal-04140738
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    References listed on IDEAS

    as
    1. Philip Strahan, 2008. "Liquidity Production in 21st Century Banking," NBER Working Papers 13798, National Bureau of Economic Research, Inc.
    2. Adrian, T. & Shin, H S., 2008. "Liquidity and financial contagion," Financial Stability Review, Banque de France, issue 11, pages 1-7, February.
    3. Crockett, A., 2008. "Market liquidity and financial stability," Financial Stability Review, Banque de France, issue 11, pages 13-17, February.
    Full references (including those not matched with items on IDEAS)

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