Walter Bagehots Lombard Street Vademecum zu einem Klassiker der Banktheorie

[Front Matter and Series Introduction]: Title page and editorial introduction to the 'Klassiker der Nationalökonomie' series. It outlines the project's goal of republishing significant economic texts with commentary to trace the evolution of economic theory from mercantilism to the early 20th century. [Zum Geleit: Bagehots »Lombard Street«: Vision und Wirklichkeit]: Bertram Schefold's introduction analyzes the historical context of Bagehot's 'Lombard Street' (1873). He discusses the transition of the Bank of England from a private institution to a de facto central bank, the tension between 'free banking' visions and the necessity of a centralized gold reserve, and compares Bagehot's pragmatic 'monetary orthodoxy' with the critiques of Karl Marx and later John Maynard Keynes. [Epigrammatisches zu Walter Bagehot]: A collection of quotes and epigrams from notable figures like Woodrow Wilson, J.M. Keynes, and Leslie Stephen regarding Bagehot's personality, his unique prose style, and his multidisciplinary impact as a 'psychologist' of business and politics. [Aus dem Opus: Selected Excerpts from Bagehot's Works]: A curated selection of excerpts from Bagehot's own writings, covering his reviews of J.S. Mill, his views on the currency monopoly, the nature of capital investment (the 'John Bull can stand many things, but he cannot stand two per cent' concept), and his proposals for a universal international currency. [Walter Bagehot – Politischer Ökonom und Publizist im Viktorianischen Zeitalter]: Heinz Rieter provides an extensive biographical and intellectual profile of Bagehot. He details Bagehot's career at Stuckey's Bank and The Economist, his political theories on the 'efficient' vs. 'dignified' parts of the British constitution, and his application of biological evolutionism to social science in 'Physics and Politics'. Rieter also situates Bagehot within the transition from classical to neoclassical economics and his relationship with the Historical School. [Bibliography and Introduction to 'Lombard Street' and the Bank of England]: Bibliography for the preceding essay by Heinz Rieter and the start of Mervyn A. King's section on the Bank of England. [Introduction to Walter Bagehot's Lombard Street by Mervyn A. King]: Mervyn A. King introduces Walter Bagehot's 'Lombard Street' as a seminal work on the London money market and central banking. He highlights Bagehot's unique literary style and his practical insights gained as editor of The Economist. The essay discusses Bagehot's primary contribution: the 'Lender of Last Resort' doctrine, which mandates that central banks provide liquidity freely during panics at high interest rates against good collateral. King also examines Bagehot's critique of the Bank of England's governance structure, including the rotation of governors and the lack of professional bankers in leadership, while noting Bagehot's foresight regarding the risks of politicizing central bank appointments. [The Economist First Issue Front Page (1843)]: A reproduction of the front page and contents of the first issue of The Economist from September 2, 1843. It includes a report on a commercial treaty with the United States and a table of foreign exchange rates for various European countries. [Bagehot's Lombard Street and Victorian Banking Theory]: Denis P. O'Brien provides an analytical background to Bagehot's work, situating it within the 19th-century debates between the Currency and Banking Schools. O'Brien argues that while Bagehot is often associated with the Banking School's flexibility, his underlying model actually aligns closely with Currency School principles regarding the use of interest rates to regulate both internal and external stability. The segment explores Bagehot's understanding of the transmission mechanism where interest rates influence the capital balance and, eventually, the real economy and price levels, challenging the modern misconception that classical economists viewed output as constant. [Macroeconomic Fluctuations and the Single Reserve Problem]: This section analyzes Bagehot's views on macroeconomic cycles and the structural fragility of the London money market. Bagehot argues that economic depressions often originate in agriculture and spread via multiplier effects, while monetary expansion leads to rising interest rates and eventual crashes. He identifies the Bank of England's monopoly as the cause of a 'single reserve' system, which he considers unnatural and risky but practically irreversible due to the delicate nature of credit. [Multiple Reserves and the Lender of Last Resort]: Bagehot discusses the superiority of decentralized reserves over a centralized system, noting that the latter encourages the Bank of England to minimize reserves to satisfy shareholders. He aligns with the Currency School's desire for market-wide reserves but identifies the practical impossibility of this in a crisis where all assets depend on the Bank's liquidity. He defines the Bank's role as the 'Lender of Last Resort', arguing it must lend freely during panics against good collateral at high interest rates to stabilize the system. [Interest Rate Policy and Institutional Reform]: This section examines Bagehot's specific policy recommendations, including the use of the discount rate to protect reserves and the need for institutional changes at the Bank of England. Bagehot suggests ending the rotation of the Governor's office in favor of a permanent professional deputy to ensure consistent policy. He also discusses the rise of joint-stock banks, the decline of private banking, and the necessity of increased transparency and professional oversight in bank management. [Bagehot's Theoretical Position and Historical Critique]: The authors evaluate Bagehot's relationship to the major economic schools of his time. While Bagehot avoided direct confrontation with the Bank Act of 1844, his 'Lender of Last Resort' theory effectively undermined its core principle of a strictly limited monetary base. He rejected the Banking School's 'Real Bills' doctrine but also criticized the Currency School's rigid definitions. The section also notes Bagehot's historical errors regarding the Bank Restriction period and his failure to credit Thomas Joplin's contributions to banking theory. [Conclusion and Bibliography]: A concluding assessment of 'Lombard Street' as a timeless classic that shaped 20th-century monetary orthodoxy, followed by a comprehensive list of academic references used in the preceding analysis. [Biography of Walter Bagehot (1826–1877)]: A detailed chronological biography of Walter Bagehot, covering his upbringing in a banking family, his education at University College London, his editorship of The Economist, and his influential writings on the English Constitution and monetary policy. It highlights his intellectual versatility, his marriage to Eliza Wilson, and his role as a government advisor before his early death in 1877. [Selected Works and Literature on Bagehot]: A comprehensive list of Bagehot's publications, including essays, books published during his lifetime, and posthumous collections edited by Hutton and Barrington. It also includes a list of secondary literature and biographies for further study of Bagehot's impact on economics and politics. [Genealogy of National Economics and Author Biographies]: This final section provides a chronological timeline ('Zeittafel') placing Bagehot among major economic thinkers from Adam Smith to Joseph Schumpeter. It concludes with biographical sketches of the authors of this Vademecum: Mervyn King, Denis P. O'Brien, and Heinz Rieter.