Neely, Christopher J. - Federal Reserve Bank of St. Louis - 2003
System to function as a lender of last resort. Other types of financial crisis require similar response, however, and the … trade in a variety of financial instruments and limit participation to wealthy
investors to avoid regulation.
4
A …, prudent regulation
and the Fed’s own willingness to act as a lender of last resort has made bank panics almost
unheard of …