The (dis)advantages of clearinghouses before the Fed

Jaremski, Matthew

doi:10.1016/j.jfineco.2018.01.002

“…After the crisis, banks repaid their loan certificates by providing cash to the banks that held the loan certificates, releasing the security collateral. Jaremski (2015Jaremski ( , 2018 provides evidence for the benefits of clearinghouse membership nationwide in terms of lower failure probabilities during crises.…”

Section: Historymentioning

confidence: 99%

Liquidity and Borrowing from a Lender of Last Resort during the Crisis of 1884

Hoag

2024

IJFBS

0

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This paper investigates the relation between bank liquidity and borrowing from a lender of last resort on a high frequency basis during a financial crisis. The paper evaluates weekly observations of individual bank borrowing of clearinghouse loan certificates by a panel of New York Clearing House member banks during the crisis of 1884. Naturally, banks with higher reserve ratios borrowed lower amounts, but banks replaced a dollar of reserves with less than a dollar of borrowing from a lender of last resort.

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The Historical Evolution of Central Banking

Ugolini

¹

2018

Handbook of the History of Money and Currency

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"Central banking" is what a central bank does, but the definition of "central bank" is less straightforward than it may appear at first sight. Following Ugolini (2017), this chapter defines central banking as the provision of public policies aimed at fostering monetary and financial stability, and surveys the historical evolution of such policies in the West from the Middle Ages to today. It shows that institutional equilibria mattered a lot in shaping the way stabilization policies were implemented: central banking evolved in markedly distinct ways in city states (like Venice, Amsterdam, Hamburg, Barcelona, or Genoa), centralized territorial polities (like Naples, Sweden, England, Austria, or France), or decentralized territorial polities (like the United States or the European Union). As a result, the historical evolution of central banking does not appear to have been driven by the "survival of the fittest", but rather by the constant adaptation of policymaking to changing political economy equilibria.

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The Historical Evolution of Central Banking

Ugolini

¹

2020

Handbook of the History of Money and Currency

4

0

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"Central banking" is what a central bank does, but the definition of "central bank" is less straightforward than it may appear at first sight. Following Ugolini (2017), this chapter defines central banking as the provision of public policies aimed at fostering monetary and financial stability, and surveys the historical evolution of such policies in the West from the Middle Ages to today. It shows that institutional equilibria mattered a lot in shaping the way stabilization policies were implemented: central banking evolved in markedly distinct ways in city states (like Venice, Amsterdam, Hamburg, Barcelona, or Genoa), centralized territorial polities (like Naples, Sweden, England, Austria, or France), or decentralized territorial polities (like the United States or the European Union). As a result, the historical evolution of central banking does not appear to have been driven by the "survival of the fittest", but rather by the constant adaptation of policymaking to changing political economy equilibria.

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The (dis)advantages of clearinghouses before the Fed

Cited by 15 publications

References 22 publications

Liquidity and Borrowing from a Lender of Last Resort during the Crisis of 1884

Liquidity and Borrowing from a Lender of Last Resort during the Crisis of 1884

The Historical Evolution of Central Banking

The Historical Evolution of Central Banking

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