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The New Lombard Street: How the Fed Became the Dealer of Last Resort Book

The New Lombard Street: How the Fed Became the Dealer of Last Resort
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The New Lombard Street: How the Fed Became the Dealer of Last Resort, Walter Bagehot's Lombard Street, published in 1873 in the wake of a devastating London bank collapse, explained in clear and straightforward terms why central banks must serve as the lender of last resort to ensure liquidity in a faltering credit s, The New Lombard Street: How the Fed Became the Dealer of Last Resort
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  • The New Lombard Street: How the Fed Became the Dealer of Last Resort
  • Written by author Mehrling, Perry
  • Published by Princeton University Press, 11/8/2010
  • Walter Bagehot's Lombard Street, published in 1873 in the wake of a devastating London bank collapse, explained in clear and straightforward terms why central banks must serve as the lender of last resort to ensure liquidity in a faltering credit s
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Authors

Acknowledgments xi

Introduction 1 A Money View Perspective 2

Lessons from the Crisis 6

Chapter One: Lombard Street, Old and New 11

The Inherent Instability of Credit 12

The Old Lombard Street 18

The New Lombard Street 23

Chapter Two: Origins of the Present System 30

From National Banking to the Fed 30

From War Finance to Catastrophe 37

Noncommercial Credit in Depression and War 43

Chapter Three: The Age of Management 48

Monetary Policy and the Employment Act 52

Listening to the Academics 57

Monetary Walrasianism 60

A Dissenting View 65

Chapter Four: The Art of the Swap 71

Currency Swaps and the UIP Norm 72

Brave New World 79

From Modern Finance to Modern Macroeconomics 85

Chapter Five: What Do Dealers Do? 92

Inside the Money Market 93

Funding Liquidity and Market Liquidity 98

Anatomy of a Crisis 103

Monetary Policy 107

Chapter Six: Learning from the Crisis 113

The Long Shadow of Jimmy Stewart 116

A Stress Test of Moulton-Martin 123

Dealer of Last Resort 132

Conclusion 136

Notes 141

References 149

Index 159


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The New Lombard Street: How the Fed Became the Dealer of Last Resort, Walter Bagehot's <i>Lombard Street</i>, published in 1873 in the wake of a devastating London bank collapse, explained in clear and straightforward terms why central banks must serve as the lender of last resort to ensure liquidity in a faltering credit s, The New Lombard Street: How the Fed Became the Dealer of Last Resort

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The New Lombard Street: How the Fed Became the Dealer of Last Resort, Walter Bagehot's <i>Lombard Street</i>, published in 1873 in the wake of a devastating London bank collapse, explained in clear and straightforward terms why central banks must serve as the lender of last resort to ensure liquidity in a faltering credit s, The New Lombard Street: How the Fed Became the Dealer of Last Resort

The New Lombard Street: How the Fed Became the Dealer of Last Resort

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The New Lombard Street: How the Fed Became the Dealer of Last Resort, Walter Bagehot's <i>Lombard Street</i>, published in 1873 in the wake of a devastating London bank collapse, explained in clear and straightforward terms why central banks must serve as the lender of last resort to ensure liquidity in a faltering credit s, The New Lombard Street: How the Fed Became the Dealer of Last Resort

The New Lombard Street: How the Fed Became the Dealer of Last Resort

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