My 132nd certificate from Coursera
Economics of Money and Banking Columbia University This full-semester course is a masterpiece! It definitely will change the...
Shadow Banking
Shadow banking is “money market funding of capital market lending”. Financial globalization and the revolution of modern finance...
Interest Rate Swaps and Credit Default Swaps
Interest Rate Swaps The interest rate swap come into being because of certain kinds of market imperfections that...
Forwards and Futures
Economy is coherent, it has structure to it. The discipline of the clearing constraint that forces people, whether...
Indirect Finance and Direct Finance
Shadow banking refers to money market funding of capital market lending. We essentially need to extend the money...
Global Liquidity and Foreign Exchange
International Transaction in 19th Century Suppose we have a surplus country which is selling goods and receiving bills...
Chartalism and Metallism
We have been thinking the hierarchy of money, with reserves (or currency which is the liability of the...
Banking as Market Making
Funding liquidity is the ability to raise money. Market liquidity, on the other side, is the ability to...
Wholesale Money Markets: Repos and Eurodollars
Repo Market Repo (someone calls it RP) is an overnight collateralized loan, organized as a simultaneous sale and...
Federal Funds and Final Settlement
Recall the hierarchy of money, the Fed is sort of at the top, it can create this high...
The Central Bank as a Clearinghouse
It is unusual to think about banking as a system of payments, and central banking as a clearing...
The Flow of Funds Theory
Hyman Minsky had something called financial instability hypothesis, suggesting that there was something inherently unstable about financial system...
From National Banking System to Federal Reserve
A few things about Allyn Young He goes against economic orthodoxy. There are 3 dimensions where he is...
The Natural Hierarchy of Money
Banks There are sorts of 2 issue arise when we are thinking about banks: There is a link...