Walter Bagehot

Walter Bagehot is a famous English author who wrote about a central banking

More About Walter Bagehot

  • Wrote a handbook on central banking in the 1800s (still considered current).
  • Postulated that very low interest rates precede and cause financial crises
    • In search for yield, investors move to speculative investments with higher yields
    • Lots of money flowing into speculative investments eventually results in a crisis/bust