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What Have We Learned Since Bagehot?

Lessons from the time before there was a Fed

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Posted in 2007-08 Financial Crisis, History of economics Tagged with: , ,

Ben Bernanke told an attentive Brookings Institution audience earlier this month, that, after he became chairman of the Federal Reserve Board, in 2006, “Literally one of the first things I did was to ask the staff to give me the handbook or what you do in the case of a financial crisis, and they provided me a little notebook, typed on a manual typewriter and mimeographed, about four pages in it, and it said, ‘Open the discount window.’ And that was about it…. Tim Geithner had a similar experience at the New York Fed, and so we went into one