The Second Bank is labeled 'central' in quotation marks in Nodell's book because unlike a true central bank it was not a lender of last resort—it did not expand lending during the Panic of 1825-26 when the banking system needed liquidity; instead it profited from rising specie value as state banknotes depreciated, 'shorting' the financial system.
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Dr. Jane NodellEvidence Quote
“if you think a key characteristic of a central bank is that it is a lender of Last Resort it doesn't seem to me that was...they actually profited from the rising value of the specie that they held”
Created: 8/11/2026, 1:31:04 AM
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