Lev Menand

Lev Menand, a Columbia Law professor, and Josh Younger, a policy advisor at the Federal Reserve Bank of New York, explore the intricate world of eurodollars. They dive into the origins of this $10 trillion market, tracing its roots to post-World War II Europe amidst Cold War tensions. The discussion reveals how geopolitical dynamics shaped the eurodollar's development, the role of eurobanks in trade across the Iron Curtain, and London's emergence as a financial hub. This unique market highlights the complexities of shadow banking and its impact on global finance.

Lev Menand, a Columbia Law School professor, and Josh Younger, a policy advisor at the Federal Reserve Bank of New York, dive into the tumultuous history of eurodollars. They discuss the pivotal moment of Nixon's move away from the gold standard in the 1970s and its lasting impact on modern finance. The conversation also explores how geopolitical tensions, particularly from the 1973 oil embargo, reshaped global monetary policies and created economic turbulence. Their insights illuminate the complexities that define today's financial landscape.

Lev Menand, a Columbia Law School professor, and Josh Younger, a Federal Reserve Bank of New York policy advisor, delve into the fascinating history of the Eurodollar market. They discuss its evolution during the tumultuous 1960s and how it transformed the dollar into a strategic asset amid Cold War tensions. The duo explores the interplay between monetary policy and international finance, addressing challenges like dollar stability and liquidity. They also highlight pivotal figures and events that shaped American economic policies during this critical period.

Lev Menand, a Columbia Law School professor and author of "The Fed Unbound," delves into the critical challenges facing the Federal Reserve's independence. He discusses the potential repercussions of recent political maneuvers, specifically how presidential control could reshape regulatory frameworks. Menand highlights the alarming negligence of Wall Street in recognizing these risks and stresses the urgent need for a balanced governance structure to preserve economic stability. The conversation unveils deep implications for monetary policy, trust in markets, and the future of regulatory agencies.

Lev Menand, an associate professor of law at Columbia, delves into the eurodollar market's pivotal role in the global financial system. He discusses its historical context, drawing parallels to the 2008 crisis, and emphasizes its current valuation of $13 trillion. Menand raises concerns about offshore dollar liabilities and the regulatory challenges they pose. The conversation also touches on the emerging presence of stablecoins and their potential to reshape financial dynamics, questioning whether they might replace eurodollars as a financial staple.

Lev Menand, a Columbia Law Professor and author of 'The Fed Unbound', discusses President Trump's controversial attempt to fire Fed Governor Lisa Cook, which raises alarms about central bank independence. He explains the legal complexities of 'for cause' dismissals and argues that unproven allegations shouldn't justify such actions. The conversation delves into how this move could reshape the relationship between presidential power and independent agencies, highlighting the risks of political influence on monetary policy and the implications for market dynamics.

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.

Lev Menand, a Columbia Law School professor and expert on banking regulation, dives into the Silicon Valley Bank collapse. He discusses the regulatory failures that allowed banks to pursue reckless growth without oversight. Menand highlights historical shifts in financial regulations and the dangers of recent changes that weakened scrutiny on smaller banks. The impact of rising interest rates on banking stability and the role of federal home loan banks also take center stage. His analysis emphasizes the need for stronger regulations to prevent future financial disasters.

In Episode 258 of Hidden Forces, Demetri Kofinas speaks with Lev Menand, author of “The Fed Unbound: Central Banking in a Time of Crisis.” Menand is an associate professor of law at Columbia Law School who has worked as an economist at the Federal Reserve Bank of New York and as a senior advisor to both the Deputy Secretary of the Treasury and the Assistant Secretary for Financial Institutions. He joins Demetri for an important and timely conversation about the US Dollar and the evolution of the international financial system into a kind of Frankenstein’s monster whose appendages and doppelgängers reach into the deepest recesses of the global economy. Dollar balances and dollar-based lending by institutions not regulated by the Federal Reserve—what we broadly refer to as the shadow banking system—have grown so large over the years that no one, not even the Fed, can actually quantify them. For most of us, awareness of just how dangerously complex the modern banking system has become was made clear fourteen years ago with the onset of what we now call “The Global Financial Crisis,” a supposedly once-in-a-lifetime event that almost repeated itself during the early days of the Covid-19 pandemic when the Fed came to the rescue of markets to stop yet another financial panic that threatened to bring down the global financial system. Panics like these ultimately stem from a fear or inability on the part of financial counterparties to settle claims and honor liabilities. With the Fed now raising interest rates more aggressively than it has in almost thirty years the question that many investors, economists, and policymakers around the world should be asking themselves is “what is the likelihood that the events we experienced in 2008 and most recently in 2020 repeat themselves today?” Our objective in bringing you this conversation is to provide you with a foundational framework for understanding the forces responsible for driving crises of liquidity in the international dollar system during a time when those forces are growing stronger and stronger. In the process you are going to learn about the plumbing of the shadow banking system, the evolution of the eurodollar market, repos, money market funds, and so much more. The majority of that conversation takes place in the second hour of today’s episode which is available to premium subscribers only. You can access the full episode, transcript, and intelligence report to this week’s conversation by going directly to the episode page at HiddenForces.io and clicking on "premium extras." All subscribers gain access to our premium feed, which can be easily added to your favorite podcast application. If you enjoyed listening to today’s episode of Hidden Forces you can help support the show by doing the following: Subscribe on Apple Podcasts | YouTube | Spotify | Stitcher | SoundCloud | CastBox | RSS Feed Write us a review on Apple Podcasts & Spotify Subscribe to our mailing list at https://hiddenforces.io/newsletter/ Producer & Host: Demetri Kofinas Editor & Engineer: Stylianos Nicolaou Subscribe & Support the Podcast at https://hiddenforces.io Join the conversation on Facebook, Instagram, and Twitter at @hiddenforcespod Follow Demetri on Twitter at @Kofinas Episode Recorded on 07/07/2022

Lev Menand, associate professor of law, and Josh Younger, senior policy advisor, discuss their paper on Treasury market liquidity as a legal phenomenon. They cover the transition from bank to market financing, the impact of increasing debt on instability, recent regulations on the primary dealer system, and restoring balance between public debt and money creation.