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

Christopher Hoag ()
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Christopher Hoag: Department of Economics, Trinity College

No 1901, Working Papers from Trinity College, Department of Economics

Abstract: 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.

Keywords: banking crisis; lender of last resort; clearinghouse; loan certificates. (search for similar items in EconPapers)
JEL-codes: G21 G28 N21 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2019-07, Revised 2019-07
New Economics Papers: this item is included in nep-cba, nep-his and nep-mon
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http://www3.trincoll.edu/repec/WorkingPapers2019/WP19-01.pdf First version, 2019 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tri:wpaper:1901

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