The Third Body Problem and Liquidity

When I think about liquidity, there are three things that I think about. There's the reverse repo facility, there's the Fed balance sheet, and then there's the TGA. And somehow these things together, I feel like you should just be able to tell what the liquidity picture is going to be. These are known relationships relative to one another. But for some reason, they produce this weird third body problem sort of outcome when it comes to liquidity.

Play episode from 26:33

Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app