The Political Economy of Liquidity, Part II (Spring Term 2024)
Session 2: The Geopolitical Economy of Liquidity Management
Monday, March 25, 2024
This session investigates the effects of the role of the US dollar as global reserve currency for the US as well as nations around the globe. Financial systems tend to revolve around the issuer of the global reserve currency. Since World War II, this has been the US dollar, first institutionalized in the official Bretton Woods System and later in market practices that have become known as Bretton Woods II. The dollar is the primary currency used in many international transactions. Financial markets around the globe exhibit a strong co-movement with developments in the US financial system as US monetary policy drives global liquidity flows, risking spillovers and shocks elsewhere. This raises interesting questions for how the US as the holder of the global reserve currency conducts monetary policy, including the Federal Reserve’s legal authority to provide dollar liquidity in relation to the needs of countries around the world.
Commentators: Andrea Binder, Otto Suhr Institute for Political Science, Freie Universität Berlin
Linda S. Goldberg, Financial Research Advisor, Federal Reserve Bank of New York
Zoom Link: https://columbiauniversity.zoom.us/j/98921411070?pwd=U2dqR1pwNmtkSzd2RG5DWGhPd0xwQT09&from=addon
