Also related to this topic of the Business Cycle, we have studied the role of the lender of last resort. Please refereeing to chapters 12 and 13 (Aliber & Kindleberger) explain:
- According to Bagehot: to whom, based on what, when and how much should a bank grant loans.
- What is the importance of Timing?
In chapter 13 we have explained the role of the international lender of last resort. Based on this chapter explain:
- what is the idea behind the “beggar-thy-neighbor”
- What are the main difference between the national and international lender of last resort?
You can only use the materials that I uploaded in the attachment. You can’t use other sources like Google. You can directly cite from the materials but please leave the page number after every citation so I can find where you cited. Thank you 🙂
