INTERMEDIATE

Lender of Last Resort

A major function of a central bank is for it to act as “lender of last resort.” During a financial crisis, the central bank is usually expected to lend to banks that are illiquid but not insolvent. Loans from the central bank help at-risk banks avoid bankruptcy during a bank run by increasing their reserve levels. Absent a central bank, the role of lender of last resort has filled by voluntary clearing house associations.

 

Gregory Rehmke - Money and Inflation

Kahn AcademyThe Discount Rate: The discount rate and window. Lender of last resort. 

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Heavily-armed police and their supporters will tell you they need all those armored trucks and heavy guns. It's a dangerous job, not least because Americans have so many guns. But the numbers just don't support these claims: Policing is safer than ever--and it's safer than a lot of common jobs by comparison. Daniel Bier has the analysis. Plus, Iain Murray and Wendy McElroy look at how the Feds are recruiting more and more Americans to do their policework for them.
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