Macro Musings with David Beckworth cover image

Chris Hughes on the Legacy of Arthur Burns and its Implications for Macro Policy Today

Macro Musings with David Beckworth

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The Role of the Federal Reserve in the Global Shadow Banking

The Federal Reserve has a growing role in the global shadow banking, or I would like to call it global dollar funding markets. In some sense, the Fed's hands are tied; if it doesn't step in, now it would blow up. But what was fascinating to learn, I wasn't aware of this, I read your article, is that Arthur Burns kind of put this in motion.

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