Odd Lots How The Coronavirus Crisis Pushed The Fed Into Truly Uncharted Territory
Apr 23, 2020
Nathan Tankus, research director at the Modern Money Network, sheds light on the Federal Reserve's unprecedented actions during the coronavirus crisis. He discusses how the Fed has expanded its role beyond traditional measures to directly support municipal authorities and the corporate debt market. Tankus explains the implications of these interventions and their historical context, stressing the importance of financial literacy and oversight in navigating this new economic landscape. The conversation also delves into ethical considerations surrounding corporate bailouts.
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Origin Story
- Nathan Tankus's interest in finance began in high school during the 2008 financial crisis.
- A class focusing on the crisis sparked his fascination with financial markets and policy.
Learning Fed Operations
- Understanding monetary operations involves learning a specific language of accounting and balance sheets.
- Repeated practice with examples is key to mastering this language.
Minsky's Influence
- Hyman Minsky's work highlighted the link between financial innovation and instability.
- Minsky's analysis of securitization in the 80s proved prescient during the 2008 crisis.