103 - Daniela Gabor on Safe Assets and Shadow Banking
Macro Musings with David Beckworth
00:00
The Uro Shadow Urope, or a Truly European Single Safe Asset Through Shadow Banking
The c b thought about this as simply a liquidd enhancing product, or a safe product that would not have its safety tested under in the crisis. And for the c b, it was very difficult to do what other central banks were doing in order to stabilize their own shadow money. So i think what we detail in the taper is how this political project had a lot of support from everywhere. It's already been very clearly designed, what the rules are. Financial markets have to adopt them. The world of finance has changed so much that the central bank needs to adapt to it.
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