The Young Fed: The Banking Crises of the 1920s and the Making of a Lender of Last Resort

A new history of crisis responses in the central bank's formative years.

The long-standing description of the Federal Reserve as a "lender of last resort" refers to the central bank's emergency liquidity provision for financial entities in periods of crisis. As Mark Carlson shows, this function was foundational to how the Fed was designed but has, at times, proven challenging to implement. The Young Fed examines the origins of the Federal Reserve's emergency liquidity provision which, along ...