Abstract
In the first part of this chapter, we emphasize the adaptability and continuity of the lender-of-last-resort (LOLR) doctrine beyond the diversity of financial structures from the nineteenth century to the present day. The second part deals with the global credit crisis and the analysis of the central banks’ innovative practices during the 2007–08 financial crisis. We highlight that the LOLR’s role is not confined to providing emergency liquidity. It aims to provide orderly deleveraging in the financial system in order to preserve the financial intermediation process. Our conclusion underlines that the crisis management has become global and strategic. It opens the way to a major regulatory and supervisory reform.
Code JEL E58, G12, G18, G21.
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© 2009 Robert R. Bliss and George G. Kaufman
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Aglietta, M., Scialom, L. (2009). Permanence and Innovation in Central Banking Policy for Financial Stability. In: Bliss, R.R., Kaufman, G.G. (eds) Financial Institutions and Markets. Palgrave Macmillan, New York. https://doi.org/10.1057/9780230103245_8
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DOI: https://doi.org/10.1057/9780230103245_8
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