THEORIE BANCAIRE, THEORIE MONETAlRE ETPRtTEURULTIMECHEZTHORNTON

Sylvie Diatkine ()

Cahiers d’économie politique / Papers in Political Economy, 2003, issue 45, 41-60

Abstract: Provision of last resort facilities cannot be caracterized as temporary deviations from a non inflationary long term predefined growth rate of the money supply. We show that its analytical foundations lie in Thornton's banking theory as the latter introduces a link between credit and money. Bank crises are due to liquidity risk as well as systemic risk. As a result, the central bank has to support the whole banking system in order to preserve confidence in the payment system in which payments are made by the means of bank debts as well as to avoid moral hazard due to asymetric information which is getting worse in times of alarm

JEL-codes: B10 B12 E40 E50 G21 (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cairn.info/acheter_article.php?ID_ARTICLE=CEP_045_0041 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpo:journl:y:2003:i:45:p:41-60

Ordering information: This journal article can be ordered from
142 rue du faubourg Saint-Martin. 75010 Paris, France.

Access Statistics for this article

Cahiers d’économie politique / Papers in Political Economy is currently edited by Claire Pignol

More articles in Cahiers d’économie politique / Papers in Political Economy from L'Harmattan
Bibliographic data for series maintained by Carlos Andrés Vasco Correa ().