The Central Bank Of Russia Is On The Defensive with Joseph Wang & Frances Coppola
Forward Guidance
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The Fed's Effects Swap Lines
If the Russian central bank was lending $100 billion to a pension fund in Japan, that whole hundred billion dollar whole has to be covered somehow. The Fed ultimately could make up that difference if there's a significant this allocation. And what sort of signs of stress in the system would we see before because the Fed doesn't just extend swap lines. Would it be credit spreads blowing out? Would it be emerging market currencies selling off stock market crash?
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