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Professor Sissoko focuses attention on the fact that the post-2008 financial system has changed dramatically but that technocrats have not tackled what the changes mean. Sissoko discusses the path to the 2008 and 2020 shocks and proposes we turn the clock back to a wiser time. ---------SEE IT----------- Alhambra YouTube: https://bit.ly/2Xp3roy Emil YouTube: https://bit.ly/310yisL
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----EPISODE #71 TOPICS---- 01:57 Who is Carolyn Sissoko, associate professor of at the University of the West of England? 05:41 What legal decisions led to such a preeminent position for the modern day repo market? 11:03 The Fed delivered liquidity in 2008 and 2020 but should markets come to count on it? 17:02 Profound legal changes in financial markets caught central bank economists unawares. 19:26 A summary of Carolyn's "The Collateral Supply Effect on Central Bank Policy" 22:27 When the Fed stopped freely financing intraday credit for banks, it encouraged repo 25:30 Is a collateralized loan safer than uncollateralized at both the micro and macro levels? 27:36 What 'moment' led to the 'birth' of the modern-day, systemically critical repo market? 34:15 Is the repo market inherently and irredeemably unstable? 39:27 Is there a solution: central counterparty, dealer of last resort, standing repo facility 43:16 Carolyn suggests the best solution is to return to an unsecured interbank money market
--------REFERENCES-------- Dr. Sissoko's Twitter: https://twitter.com/@csissoko Dr. Sissoko's "The Collateral Supply Effect on Central Bank Policy": https://bit.ly/3tCslOV Dr. Sissoko on Social Science Research Network: https://bit.ly/3fhK5Kj Dr. Sissoko's Macro Musings Interview: https://bit.ly/3trTCTV
---------WHO----------- Carolyn Sissoko, associate professor of economics at the University of the West of England with Jeff Snider, Head of Global Investment Research for Alhambra Investments, and Emil Kalinowski. Art by the Mr. Chips of colour, David Parkins. Podcast intro/outro is "Revolt" by Luwaks at Epidemic Sound. |