Financial Stability and the Federal Reserve as a Lender of Last Resort

Order Description Review this policy brief from the Peterson Institute for International Economics. Assess how the Federal Reserve implements Bagehot’s dictum as a means of fostering economic growth in the current period. Do you agree with the author of the policy brief that, “in modern financial markets, the Bagehot principle of providing lender-of-last-resort support remains necessary but is no longer sufficient”? Evaluate the changing role of government regulation in mitigating systemic risk, providing evidence to support your view.