Reading
Walter Bagehot, Lombard Street: A Description of the Money Market (1873), Chapters 1–2 and 7.
The founding statement of the lender-of-last-resort doctrine. Every twenty-first-century banking crisis has been analyzed through Bagehot's rule — lend freely, at a penalty rate, on good collateral. The Scholar should be able to explain that rule in their own words.
Reading
Primary and secondary sources for this lesson.