The classic postulate of Bagehot, for a central bank to be a lender  5  There is by now a vast literation on the issue of whether and under what circumstances contracts can and will be renegotiated (for an early contribution see D. Fudenberg and J. Tirole, “Moral-Hazard and Renegotiation in Agency Contracts,” Econometrica, 1990).
Endnotes [*]  Thanks to Ellis Connolly for his assistance. [1]  Debelle G (2018), ‘Lessons and Questions from the GFC’, Address to the Australian Business Economists Annual Dinner', 6 December. [2]  Logan L (2020), ‘Treasury Market Liquidity and Early Lessons from the Pandemic Shock’, remarks at BrookingsChicago Booth Task Force on Financial Stability meeting, panel on market liquidity, 23 October.