Bagehot for beginners: The making of lending of last resort operations in the mid-19th century

Vincent Bignon, Marc Flandreau and Stefano Ugolini

No 2009/22, Working Paper from Norges Bank

Abstract: According to a Keynesian view, short term output fluctuations are normally demand side led. Since prices reflect demand, they should mirror output fluctuations. Thus, prices and output are expected to move in the same direction in the short run. The present paper investigates the historical co-movements of output and prices for a small open raw material based economy, in this case Norway 1830-2006. We find little evidence of a positive relationship. On the contrary, we rather find negative correlations between the two variables, indicating that supply side shocks through the foreign sector were more important for historical business cycles in Norway than assumed hitherto.

Keywords: Lending of last resort; Bagehot; Bank of England; financial crises; history of monetary policy (search for similar items in EconPapers)
JEL-codes: E58 G01 N13 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2009-10-05
New Economics Papers: this item is included in nep-cba, nep-his, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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https://www.norges-bank.no/en/news-events/news-pub ... pers/2009/WP-200922/

Related works:
Journal Article: Bagehot for beginners: the making of lender‐of‐last‐resort operations in the mid‐nineteenth century (2012)
Working Paper: Bagehot for beginners: The Making of Lending of Last Resort Operations in the Mid-19th Century (2012)
Working Paper: Bagehot for Beginners: The Making of Lender of Last Resort Operations in the Mid-Nineteenth Century (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bno:worpap:2009_22

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