Walter Bagehot

Walter Bagehot was a British economist and journalist in the 19th century, best known for his ideas on how central banks should operate during financial crises. He emphasized that in times of economic panic, lenders of last resort—like a central bank—should act decisively to provide quick, liquidity support to prevent bank failures and stabilize the economy. Bagehot believed clear communication, calm leadership, and prompt assistance are essential for maintaining confidence and preventing panic. His insights remain influential in modern central banking strategy, guiding how authorities respond to financial shocks.