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Working Paper

Lessons of the Past and Prospects for the Future in Lender of Last Resort Theory

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A history of the changes in the theory of the role of the lender of last resort-as a source of solvency versus liquidity support-and a discussion of the distinction between necessity and convenience (the American and European versions of lender of last resort theory) in mounting rescue operations through the central bank.
08.01.1988ISSN 2573-7953 WP 88-05

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Todd, Walker. 1988. “Lessons of the Past and Prospects for the Future in Lender of Last Resort Theory.” Federal Reserve Bank of Cleveland, Working Paper No. 88-05.