Wednesday, February 3, 2010

Happy Birthday...

or, at least anniversary of birthday. Today we salute Walter Bagehot. Although not an economist by training, he is still often quoted in economic circles. He was a writer and journalist (one-time editor of The Economist) and was interested in current events. You can learn much about Bagehot's life here and here.

But my primary interest in Bagehot was his work Lombard Street: A Description of the Money Market. It is an excellent insight into the workings of central banks, including times of crisis. Anyone who has studied monetary policy knows his prescription to "lend freely at a penalty rate." You can access the entire work (free) at The Library of Economics and Liberty.

I welcome your thoughts.

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