FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W283340557> ?p ?o ?g. }

• W283340557 endingPage "364" @default.
• W283340557 startingPage "333" @default.
• W283340557 abstract "It has become commonplace in current crisis to refer to Federal Reserve as economy's of last (LLR). Typical is observation of Glenn Hubbard, Hal Scott, and John Thornton (2009) that Over many decades and especially in this financial crisis, Fed has used its balance sheet to be a classical of last resort. With all due respect to these authors and numerous others holding same view, their statement is wrong, For while there exists such an entity as classical of last resort--the traditional, standard LLR model, to be exact--the Fed has rarely adhered to it. And in current crisis, Fed has deviated from classical model in so many ways as to make a mockery of notion that it is an LLR. In short, Fed may be many things, crisis manager included. But it is not an LLR in traditional sense of that term. True, Fed spokesmen pay lip service to classical prescription, all while thinking that they can outperform it with additional intervention. They believe that while classical theory of LLR policy is valid as far as it goes, it doesn't go far enough to solve current financial and credit market problems. To this end, Fed has ambitiously extended role of LLR so far beyond what classical writers would have recognized and approved as to disqualify itself as an authentic classical LLR. The question is whether this expansion has been necessary or correct. Could it be that Fed's recent deviations from classical doctrine have been more harmful than helpful? Could it be that they are based upon fallacious or unproved conjectures and assumptions about how credit markets work that have led Fed astray? Might Fed contribute more to macroeconomic stability by abandoning its ambitious new initiatives and instead returning to classical model? This article addresses these issues by describing, analyzing, and appraising both classical theory and Fed's departures from it. Architects of Classical Theory Classical lender-of-last-resort theory is notion that LLR should protect bank-created money stock from contraction (and expand it to offset falls in velocity) in lace of bank runs and panics, a duty it performs through pre-announced lending, at a penalty interest rate so as to minimize moral hazard, to creditworthy borrowers offering good collateral. This theory was essentially product of two Englishmen. The first was Henry Thornton (1760-1815), banker, Member of Parliament, evangelical reformer, and all-time great monetary theorist, who developed his doctrine at beginning of 19th century when British government had temporarily suspended gold convertibility of Bank of England's currency during Napoleonic Wars. Freedom from obligation to make cash payments gave Bank some discretionary control over money stock and room to maneuver as an LLR. When Bank proved reluctant to use these powers, Thornton sought to convince it to do otherwise. The theory's second architect was Walter Bagehot (1826-77), economic historian, financial writer, and longtime editor of The Economist, who wrote in 1850s, '60s, and '70s when Bank of England had resumed convertibility and as an LLR was forced to operate within constraints of gold standard. Bagehot's genius was to show precisely how and why it should do so. Although others contributed to classical theory, Thornton-Bagehot (T-B) version was one bequeathed to central bankers. Even though no gold standard now functions as a basic monetary institution, T-B model is today benchmark policy for Federal Reserve or any other central bank. Henry Thornton's Contribution The term lender of last resort originates with Sir Francis Baring, who in his Observations on Establishment of Bank of England (1797) referred to Bank as the dernier resort from which all banks could obtain liquidity in times of crisis. …" @default.
• W283340557 created "2016-06-24" @default.
• W283340557 creator A5018678055 @default.
• W283340557 date "2010-03-22" @default.
• W283340557 modified "2023-09-26" @default.
• W283340557 title "Lender of Last Resort: What It Is, Whence It Came, and Why the Fed Isn't It" @default.
• W283340557 cites W1491069747 @default.
• W283340557 cites W1499497740 @default.
• W283340557 cites W1597401592 @default.
• W283340557 cites W1999642054 @default.
• W283340557 cites W2045782423 @default.
• W283340557 cites W2063173076 @default.
• W283340557 cites W2126349611 @default.
• W283340557 cites W2135751186 @default.
• W283340557 cites W3121144117 @default.
• W283340557 cites W3124997601 @default.
• W283340557 cites W43800846 @default.
• W283340557 cites W562226214 @default.
• W283340557 hasPublicationYear "2010" @default.
• W283340557 type Work @default.
• W283340557 sameAs 283340557 @default.
• W283340557 citedByCount "13" @default.
• W283340557 countsByYear W2833405572012 @default.
• W283340557 countsByYear W2833405572013 @default.
• W283340557 countsByYear W2833405572014 @default.
• W283340557 countsByYear W2833405572015 @default.
• W283340557 countsByYear W2833405572017 @default.
• W283340557 crossrefType "posted-content" @default.
• W283340557 hasAuthorship W283340557A5018678055 @default.
• W283340557 hasConcept C10138342 @default.
• W283340557 hasConcept C126285488 @default.
• W283340557 hasConcept C162324750 @default.
• W283340557 hasConcept C165556158 @default.
• W283340557 hasConcept C17744445 @default.
• W283340557 hasConcept C183206440 @default.
• W283340557 hasConcept C190253527 @default.
• W283340557 hasConcept C199539241 @default.
• W283340557 hasConcept C2776211767 @default.
• W283340557 hasConcept C2777026412 @default.
• W283340557 hasConcept C2778300220 @default.
• W283340557 hasConcept C2779465119 @default.
• W283340557 hasConcept C2992735868 @default.
• W283340557 hasConceptScore W283340557C10138342 @default.
• W283340557 hasConceptScore W283340557C126285488 @default.
• W283340557 hasConceptScore W283340557C162324750 @default.
• W283340557 hasConceptScore W283340557C165556158 @default.
• W283340557 hasConceptScore W283340557C17744445 @default.
• W283340557 hasConceptScore W283340557C183206440 @default.
• W283340557 hasConceptScore W283340557C190253527 @default.
• W283340557 hasConceptScore W283340557C199539241 @default.
• W283340557 hasConceptScore W283340557C2776211767 @default.
• W283340557 hasConceptScore W283340557C2777026412 @default.
• W283340557 hasConceptScore W283340557C2778300220 @default.
• W283340557 hasConceptScore W283340557C2779465119 @default.
• W283340557 hasConceptScore W283340557C2992735868 @default.
• W283340557 hasIssue "2" @default.
• W283340557 hasLocation W2833405571 @default.
• W283340557 hasOpenAccess W283340557 @default.
• W283340557 hasPrimaryLocation W2833405571 @default.
• W283340557 hasRelatedWork W1008447531 @default.
• W283340557 hasRelatedWork W1565176215 @default.
• W283340557 hasRelatedWork W1569778036 @default.
• W283340557 hasRelatedWork W1575431386 @default.
• W283340557 hasRelatedWork W2045782423 @default.
• W283340557 hasRelatedWork W2073779886 @default.
• W283340557 hasRelatedWork W2171023787 @default.
• W283340557 hasRelatedWork W2186177692 @default.
• W283340557 hasRelatedWork W2283303058 @default.
• W283340557 hasRelatedWork W2461329797 @default.
• W283340557 hasRelatedWork W2479150671 @default.
• W283340557 hasRelatedWork W2482604067 @default.
• W283340557 hasRelatedWork W2504926568 @default.
• W283340557 hasRelatedWork W2706931317 @default.
• W283340557 hasRelatedWork W3123597532 @default.
• W283340557 hasRelatedWork W3130596708 @default.
• W283340557 hasRelatedWork W3157284131 @default.
• W283340557 hasRelatedWork W337572386 @default.
• W283340557 hasRelatedWork W43800846 @default.
• W283340557 hasRelatedWork W651734982 @default.
• W283340557 hasVolume "30" @default.
• W283340557 isParatext "false" @default.
• W283340557 isRetracted "false" @default.
• W283340557 magId "283340557" @default.
• W283340557 workType "article" @default.