Odd Lots

Younger and Menand Explain How We Got the Modern Banking System

Dec 15, 2022

Josh Younger is a research partner focused on the origins of modern banking, while Lev Menand is a Columbia law professor and author probing the Federal Reserve's evolution. They discuss the historical development of modern banking, including the rise of shadow banking and the repo market. The pair also examine the Federal Reserve's complex influence in economic management and the persistent vulnerabilities within the financial system. The insights into digital currencies and regulatory challenges further underscore the need for reevaluating banking practices and ensuring financial stability.

01:07:08

Creator website

Episode guests

Lev Menand

Josh Younger

AI Chapters

Episode notes

Intro

2min

The Evolution of Modern Banking

21min

Navigating the Federal Reserve's Influence on Modern Economics

4min

The Federal Reserve: Balancing Independence and Intervention

11min

Navigating Financial Fragility: Current Risks and Crypto Challenges

11min

Exploring the Future of Banking and Digital Currencies

3min

Rethinking the Banking System

18min

Wrapping Up a Live Discussion on Modern Banking and Future Engagement

3min

The US financial system today is pretty much taken as a given. We have the Federal Reserve, which sets interest rates and provides various liquidity backstops. We have regulated banks, which lend and create money and have access to the Fed. And we have non-bank financial activity that falls under the nebulous umbrella of "shadow banking." But how did we actually end up with this system? And why did policymakers design it the way they did? On this episode, which was recorded live at Bloomberg's New York office on Nov. 29, we speak with Josh Younger and Lev Menand. They are research partners who have delved into the big questions about the structure of modern banking, the history that has shaped it into what it is today, and what its design actually means for the economy and society.

See omnystudio.com/listener for privacy information.

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.