Perry Mehrling, The New Lombard Street: How the Fed Became the Dealer of Last Resort

Abstract

Lombard Street is at the heart the City of London, connecting Bank junction with the Bank of England on Threadneedle Street, and until WW1, was considered to be the centre of the financial world. The Bank of England was one of the oldest Central Banks and was known for its financial innovations to control the money market and to manage liquidities. Lombard Street: A description of the Money Market is the title of the famous book by Bagehot (1873), which described these innovations and—70 year...