[DOWNLOAD] "Lender of Last Resort: What It Is, Whence It Came, And Why the Fed Isn't It (The U.S. Federal Reserve Board)" by The Cato Journal * eBook PDF Kindle ePub Free
eBook details
- Title: Lender of Last Resort: What It Is, Whence It Came, And Why the Fed Isn't It (The U.S. Federal Reserve Board)
- Author : The Cato Journal
- Release Date : January 22, 2010
- Genre: Politics & Current Events,Books,
- Pages : * pages
- Size : 309 KB
Description
It has become commonplace in the current crisis to refer to the Federal Reserve as the economy's lender of last resort (LLR). Typical is the observation of Glenn Hubbard, Hal Scott, and John Thornton (2009) that "Over many decades and especially in this financial crisis, the Fed has used its balance sheet to be a classical lender of last resort." With all due respect to these authors and numerous others holding the same view, their statement is wrong, For while there exists such an entity as the classical lender of last resort--the traditional, standard LLR model, to be exact--the Fed has rarely adhered to it. And in the current crisis, the Fed has deviated from the classical model in so many ways as to make a mockery of the notion that it is an LLR. In short, the Fed may be many things, crisis manager included. But it is not an LLR in the traditional sense of that term.