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 Fed's Role in the Rise of Commercial Paper Markets

There's a huge run up in commercial paper markets at the end of the 1960s. So everybody is effectively non-financial companies are lending and borrowing from one another. And it's created this network of integrated mutual reliance where liquidity can dry up in an instant. The Fed does a couple things to stabilize the entire system.

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