boe speech, 2006-07-25
The need for a central bank to provide liquidity to the market was identified as early as 1802, when Henry Thornton said:- '…if the Bank of England, in future seasons of alarm, should be disposed to extend its discounts in a greater degree than heretofore, then the threatened calamity may be averted through the generosity of that institution.'
Sentiment: neutral
Topic: financial_stability