The lender of last resort (LLR) function is a form of micro-management employed by central banks, usually in cooperation with or under the direction of governments, either to mitigate banking panics, or to prevent them from occurring. This paper considers the employment of the LLR function in...

This comment explores some implications and extensions of the papers collected in this volume. It stresses the disadvantages of ignoring the very long-run nature of the distributional question. It analyses the difficulty of finding practical as well as satisfactory policy solutions, especially...