Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70394
Authors: 
Laidler, David
Year of Publication: 
2002
Series/Report no.: 
Research Report, Department of Economics, University of Western Ontario 2002-9
Abstract: 
Henry Thornton and Walter Bagehot were both advocates of discretionary monetary policy, especially as regards the Bank of England's role as a lender of last resort, but they differed on many details of the case. Where Bagehot thought that the Bank's central position in the financial system was purely the product of a specific monopoly privileges, Thornton also saw it as the desirable and natural outcome of the operations of banking; where Bagehot located the productivity of banking in credit markets, Thornton stressed the importance of liability side of the system's balance sheet; and where Bagehot took the desirability of gold convertibility for granted, Thornton was willing to trade off this goal against the maintenance of monetary stability.
Document Type: 
Working Paper

Files in This Item:
File
Size
332.83 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.