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The Fed Created the Repo Market, then Ignored it [Ep. 273, Eurodollar University]

Eurodollar University

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Did Ripo Become a Private Affair in the Nineties?

From the 19 fifties forward, ripo didn't just become a private affair, became the central private access of liquidity throughout the global system. And in the 19 seventies, it became quite widespread, such that by 19 81, we have a quote here in the article from the head of the bosson branch of the fed,. He talks about how m one is just simply no longer timate, because repos being used as transaction balances. As a checking account, you have a security of some sort with a long term maturity. But now you've moved it over into this repo transaction. Now you can use it as cash, because you're repoing it overnight every single day

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