Financial observer and journalist Walter Bagehot sheds light on the world of banking in his influential tract
Written in response to a nineteenth-century banking crisis in England,
Walter Bagehot’s influential treatise was one of the first to clearly
explain complex financial systems like international banking, currency,
and corporate finance in clear and easy-to-understand language. Credit,
Bagehot suggests, is based primarily on trust. When the banks lose the
public’s trust, the entire system can collapse.
In Lombard Street, Bagehot—who was the editor in chief of the Economist—sets
forth a series of proposals for the strengthening and survival of
struggling financial institutions, such as allowing irresponsible banks
to collapse and creating strong central banks to combat inflation. His
insights are as relevant in today’s economic climate as they were when
the book was first published in 1873.
This ebook has been professionally proofread to ensure accuracy and readability on all devices.
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