2014 Homer Jones Memorial Lecture, Robert E. Lucas, Liquidity: Meaning, Measurement, Management, Part 3

April 2, 2014

In the last portion of the presentation, Lucas examines the nature of financial crises. The fundamental duty of a central bank, he says, is to avoid sudden deflations. In the 1930s, runs on uninsured bank deposits caused the problem. In 2008, it was what Lucas refers to as a "run on repo"—in this case, it mimicked a bank run, but it was tied to the liquid assets that were created by the financial services sector.

Full text of President Bullard's remarks.

The Homer Jones Memorial Lecture Series honors those who exemplify the highest qualities of leadership in economics and public policy.  As research director, and later as senior vice president at the St. Louis Fed, Homer Jones (1906-1986) played a major role in developing the Bank as a leader in monetary research and statistics.

For more information about the Homer Jones Memorial Lecture Series, please visit research.stlouisfed.org/conferences/homer/.

The Homer Jones Memorial Lecture Series is sponsored by:

  • Federal Reserve Bank of St. Louis
  • St. Louis Gateway Chapter of the National Association for Business Economics
  • Saint Louis University
  • Southern Illinois University–Edwardsville
  • University of Missouri–St. Louis
  • Washington University in St. Louis

James Bullard

James Bullard
President and Chief Executive Officer

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