Study On The Historical Evolution Of System Of Lender Of Last Resort Of USA And The Revelation To China

Subprime mortgage crisis derive from the USA broke out in2007, which make the crisis’s money lenders and managers of the system of lender of last resort also break through the traditional cognitive scope, has a break through development in the connotation and extension. The assistance of system of lender of last resort will bring moral hazard, adverse selection, as well as inflation and other issues, but the role of its anti-crisis is no doubt. However, the United States, which praise the free economy highly, at the beginning to resolve the financial crisis to act as lender of last resort role is not the central bank-the Federal Reserve, but private organizations.This paper through a historical review of several major financial crisis happened in U.S.A, took the research perspective on the historical analysis of institutional change, focus on the market selection process and reasons about the private sector transfer by government to act of system of lender of last resort in the U.S.A, Summed up the historical evolution process of the system of lender of last resort of the U.S. is formed under struggle and compromise between the two ideas of the government intervention and market freedom. The paper can be divided into three parts:The first part, introduce the concept of the lender of last resort and its fundamental theory.The second part, this is the main part in the paper, to defuse the crisis, put the different role actors of the lender of last resort as the division basis, the historical evolution of the system of lender of last resort can be divided into:the early generation (1776-1900),the major transition period (1900-1933)and the mature stage (1933-2010). As the crisis had further complicated, during the financial rescue, the disadvantages of the implement subject, who as the lender of last resort initially, are also presented. In1913, the nature of a public sector of the lender of last resort-the central bank is establish, however, the Fed also exposed the deficiencies of their own systems and policies in the previous financial rescue. With the subject of lender of last resort, the objects of the assistance and the measures of rescue diverse increasingly, It’s easy to find that the market is not a panacea as anti-crisis, the government is not either, it should under the guidance of the government, advocate the use of market mechanism to play the functions of lender of last resort.The third part, combined with the characteristics of executive-led and the drawbacks of system of the lender of last resort in China, to put forward suggestions of improving the lender of last resort of China at the present stage.