Lev Menand on *The Fed Unbound: Central Banking in a Time of Crisis*
Macro Musings with David Beckworth
00:00
Shadow Banking, or the Global Dollar System?
Shadow banking, or the global dollar system. The fed's balance sheet is at least implicitly back stopping something much, much larger than just the traditional banking system. During panics overseas, people actually issue more dollar liabilities'. It's a safer, lower costing liability than main their domestic currentcy. That's also been brought from literature that can crate problems for emergency markets and other countries overseas.
Play episode from 27:35
Transcript
