The New Lombard Street | Session 1

This is the first of three sessions on Perry Mehrling's 2011 book The New Lombard Street: How the Fed Became the Dealer of Last Resort

https://www.amazon.com/Money-Interest-Public-American-1920-1970/dp/0674584309/

In this book, Mehrling applies his Money View framework to interpret the history of the Fed and to make sense of the global financial crisis of 2007-2009.

Walter Bagehot's Lombard Street, published in 1873 in the wake of a devastating London bank collapse, explained in clear and straightforward terms why central banks must serve as the lender of last resort to ensure liquidity in a faltering credit system. Bagehot's book set down the principles that helped define the role of modern central banks, particularly in times of crisis–but the recent global financial meltdown has posed unforeseen challenges. The New Lombard Street lays out the innovative principles needed to address the instability of today's markets and to rebuild our financial system.

This week, we discuss the introduction as well as chapters 1 and 2.