The Panic of 1825 and the Birth of Central Banking


A little bit of history from Berkeley economics professor Brad DeLong. In the 15 April 2009 edition of The Week, DeLong wrote The Panic of 1825 in which he describes how the Bank of England overstepped its authority by lending money to a bank in the midst of runs of the banks. This quelled the panic and established a valuable precedent.

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