Tag: financial globalization

Testing the Global Central Bank Swap Network

In the last few weeks, the ECB has been drawing on its liquidity swap line with the Fed, first $308 million for a week, then $658 million for a week, and last week back down to $358 million.  What’s that about? It’s not such a large amount.  Bank of Japan borrowed more in the past, […]

Tags: central banking, financial globalization, market liquidity

Old economic thinking is the problem, says BIS

The 85th Annual Report of the BIS is not perhaps the obvious first choice for beach-reading on a holiday weekend, but having read through its 119 pages, the core message reminds me of nothing so much as the most memorable line of the 40-year-old summer blockbuster “Jaws”:  “You’re going to need a bigger boat.” Notwithstanding everything […]

Tags: central banking, financial globalization, financial stability, inherent instability, monetary policy