Historical banks acted as last resort lenders during European debt crisis
The article discusses the importance of the lender of last resort (LOLR) function in central banking. It argues that while the LOLR function is crucial for financial stability, it doesn't change the core role of central banks in issuing money. The chapter looks at historical examples, like the Hamburger Bank in 1763, to show how early LOLR actions were similar to what modern central banks did in the 2008 financial crisis.