Disagreement on Lender of Last Resort Role Sparks Monetary Policy Debate.
Henry Thornton and Walter Bagehot had different views on how the Bank of England should act as a lender of last resort. Bagehot believed the Bank's role was due to special privileges, while Thornton thought it was a natural part of banking. Bagehot focused on credit markets, while Thornton emphasized the balance sheet. Bagehot valued gold convertibility, but Thornton was willing to sacrifice it for monetary stability.