Research Discussion Paper – RDP 2001-07 A History of Last-Resort Lending and Other Support for Troubled Financial Institutions in Australia

Contents

• Introduction
• Theoretical Approaches to Lender-of-last-resort Policy
• The 1820s
• The 1840s Depression
• Intermittent Failures and Runs, 1850–1890
• The 1890s Depression
• Proposals for Government Note Issue and the Development of a Central Bank
• The 1930s Depression
• The Post-war Period
• The 1970s
• The Deregulated Era
• Conclusion
• Appendix A: Financial Disturbances in Australia – a Chronology
• Appendix B: Press Releases Addressing Difficulties at Financial Institutions 1974–1992
• References

The authors would like to thank Chay Fisher, Keith Hall, Chris Kent, John Laker and David Merrett for helpful comments. Any remaining errors are our own. The views expressed are those of the authors and should not be attributed to the Reserve Bank of Australia.