Macro Musings with David Beckworth cover image

Brad Setser on Addressing the Global Dollar Shortage and COVID-19’s Implications for Worldwide Trade Imbalances

Macro Musings with David Beckworth

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Do You Think the Dollar Funding Need Has Moved From Europe to Asia?

There's less reliance on cross-ferency swaps and commercial paper bought by US money market funds. Japanese banks in particular, but also Canadian banks have significantly increased their dollar lending. The second important change is that over time with zero rates around the world, the corporate savings glut in East Asia.

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