Macro Musings with David Beckworth cover image

Brad Setser on Addressing the Global Dollar Shortage and COVID-19’s Implications for Worldwide Trade Imbalances

Macro Musings with David Beckworth

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Are We in a Dollar Funding Crisis?

I completely support the Fed's actions, I think they were warranted. How do we know when there is a dollar funding crisis or need? What indicators do we look at to tell us, oh boy, time for the Fed to turn on the switch for these dollar swap facilities? And then there's now close to $400 billion outstanding, which suggests that this responded to a real need.

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