Lev Menand on *The Fed Unbound: Central Banking in a Time of Crisis*
Macro Musings with David Beckworth
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Capital Markets - The Shadow Banking System
The shadow banking system, the more their cost of funding is supported by the central bank, the more it is money financed. And so you can have a deep and liquid capital market, which is contrary to the scheme of glass egl. This facilitates the use of the dollar in an international trade, including trade between third countries that don't involve the us. It's an inefficiency that is embraced for its legitimating effects - but there are other arguments too.
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