Provision of last resort facilities cannot be caracterized as temporary deviations from a non inflationary long term predefined growth rate of the money supply. We show that its analytical foundations lie in Thornton's banking theory as the latter introduces a link between credit and money. Bank crises are due to liquidity risk as well as systemic risk. As a result, the central bank has to support the whole banking system in order to preserve confidence in the payment system in which payments are made by the means of bank debts as well as to avoid moral hazard due to asymetric information which is getting worse in times of alarm
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