Ben bernanke and bagehot's rules

Thomas L. Hogan, Linh Le, Alexander William Salter

Research output: Contribution to journalArticlepeer-review

16 Scopus citations


Former Federal Reserve Chairman Ben Bernanke has claimed that the Fed's bank bailouts during the 2008 financial crisis were consistent with Walter Bagehot's rules for a lender of last resort. This paper demonstrates Bernanke's claims to be mistaken. First, we outline Bagehot's doctrine for a classical lender of last resort. Next, we discuss Bernanke's theory of bank bailouts and his statements regarding the Fed's role in the 2008 bank bailouts. Finally, we examine the bailouts and demonstrate that, contrary to Bernanke's claims, the Fed's actions were not consistent with Bagehot's rules for a lender of last resort.

Original languageEnglish
Pages (from-to)333-348
Number of pages16
JournalJournal of Money, Credit and Banking
Issue number2-3
StatePublished - Mar 1 2015


  • Bank bailouts
  • Ben Bernanke
  • Lender of last resort
  • Walter Bagehot


Dive into the research topics of 'Ben bernanke and bagehot's rules'. Together they form a unique fingerprint.

Cite this