I raised the prospect that the Fed's swap lines might not be there during the next financial crisis in this column on the breakdown of international economic cooperation in the 1930s.
It is not the economic impact of tariffs that is most worrying https://www.economist.com/finance-and-economics/2025/03/06/it-is-not-the-economic-impact-of-tariffs-that-is-most-worrying
It is not the economic impact of tariffs that is most worrying https://www.economist.com/finance-and-economics/2025/03/06/it-is-not-the-economic-impact-of-tariffs-that-is-most-worrying
Comments
https://on.ft.com/3vgfhCW
I read article. Reference to swaps is just in passing.
But I think at the time of the crisis, an absence of swap lines creates just more balance sheet contagion in the domestic risk asset. Tribalistic self-fuckery
Risk taking should be lower, but won't be
Believe me, will count as "economic" if his speculation is confirmed
Your reference to the currency accord is funny in this context. Its sponsors forget that the real side is unavoidable. Sort of the opposite of my point 1/2
I am just pointing out a funny irony
You can't guide the dollar lower and turn that into something other than a negative supply side shock by frog marching Canadians and Japanese to the long end of the Treasury curve
They are so fucking clueless
https://www.federalreserve.gov/newsevents/speech/fischer20150526a.htm