Lend freely to banks, at a penalty rate, against good collateral: That advice, from 19th-century economist Walter Bagehot, has guided central banks in how they deal with crises. Lending freely to ...
Collateral is a valuable asset (like a car, house or even cash) you can pledge to secure a loan. If you fail to repay your loan, the lender can seize whatever you've put up as collateral. Financial ...