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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The Global Financial Crisis, More Swap Lines, More IMF Loans, Question Mark

The global financial crisis should have served as a solitary lesson in the dangers of dollar dominance and global finance. Over the past decade, the volume of dollar loans to and dollar denominator debts issued by companies outside the US has continued to balloon. A lot of European banks have been making a lot of money by running big dollar books. The rush for dollars now was similar to 2008 but in some other ways is very different.

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