The Domestic Lender of Last Resort

The hallmark in the development of 'the Art of Central Banking' over the last two hundred years has been the evolution of the concept of a lender of last resort. The expression comes from the French dernier ressort, and centers on the last legal jurisdiction to which a petitioner can take an appeal. The term now has become thoroughly anglicized, and in central-banking English places the emphasis on the responsibilities of the lender rather than the rights of the borrower or petitioner.KeywordsCentral BankFederal ReserveMoney SupplyGovernment BondCash HoldingThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.