The Lender of Last Resort: Some Historical Insights
This paper discusses the role for a lender of last resort (LLR) in preventing banking panics (section I) , then briefly considers classical and more recent concepts of the LLR (section II). Section III examines historical evidence for the U.S. and other countries on the incidence of banking panics and LLR actions, and the record of alternative LLR arrangements in the U.S., Scotland and Canada, as well as the historical record on ailouts. Section IV offers some lessons from history.
|Date of creation:||Jun 1989|
|Date of revision:|
|Publication status:||published as "The Lender of Last Resort: Alternative Views and Historical Experience." Economic Review (Federal Reserve Bank of Richmond), Vol. 76/1, pp. 18-29, (January/February 1990).|
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