Steven Kamin on the Global Influence of Fed Policy and the U.S. Dollar
Macro Musings with David Beckworth
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The History of Currency Swap Lines
There have actually been swap line arrangements for decades and those that were done with other advanced economy, at the time we're called like G10 economies. With the financial dislocations in 2007 and 2008, new swap lines were developed in order to basically be able to channel dollars to financial institutions in other countries. And then it was recognized as the global financial crisis deepened after Lehman Brothers, that there were other financial systems that were also being impacted very severely. That's when it was expanded from five central banks to 14, including for emerging market economies,. Korea, Singapore, Mexico, and Brazil.
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