“Where’s my swap line?”
The past two decades have seen the construction of a tiered system of international liquidity provision, the first tier including those whose credit is sufficient for a swap line with the Fed, the second tier including those who can offer acceptable collateral to the Fed, and the third tier includin...
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| Format: | Article |
| Language: | deu |
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De Gruyter
2022-11-01
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| Series: | Jahrbuch für Wirtschaftsgeschichte |
| Subjects: | |
| Online Access: | https://doi.org/10.1515/jbwg-2022-0019 |
| Summary: | The past two decades have seen the construction of a tiered system of international liquidity provision, the first tier including those whose credit is sufficient for a swap line with the Fed, the second tier including those who can offer acceptable collateral to the Fed, and the third tier including everyone else. It is a global dollar system, with the Fed operating de facto as the global central bank providing international lender of last resort support to the system. It is a system created not so much by conscious design, but rather as a pragmatic response to crisis, bit by bit over time. |
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| ISSN: | 0075-2800 2196-6842 |