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Real Vision: Finance & Investing

The Interview - The Fed's New Unwritten Mandate

Real Vision: Finance & Investing

Real Vision

Business News, Business, Investing, News

4.11.1K Ratings

🗓️ 11 May 2020

⏱️ 51 minutes

🧾️ Download transcript

Summary

Professor Mark Blyth and Professor Adam Tooze explore how coronavirus is laying bare the hidden risks embedded within our financial systems and how central banks worldwide are scrambling to paper over those chasms of danger. To them, it seems that the Federal Reserve has rewritten its remit, and they discuss how rather than try and keep prices stable or keep unemployment low, the sole focus of the Fed right now seems to be supporting asset prices at any cost, even if that means bailing out leveraged entities who took on too much risk. They also discuss Europe and how this crisis is heightening the contradictions within the Eurozone and pushing the European banking system to the brink. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

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0:03.0

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0:16.1

worldwide so sign up for a one-pound per month trial period at shopify.co. UK slash Podcast 23 or lowercase and take your business to the next level today. In this conversation, Mark Blythe and Adam II's explore how coronavirus is

0:39.2

laying bare the hidden risks embedded within our financial system, and how Central Banks worldwide are

0:45.0

scrambling to paper over these chasms of danger.

0:48.4

Mark Leith is a distinguished political economist and an authority on Central Banks, and

0:52.4

Adam Toe's is one of the world's preeminent financial

0:54.9

historians.

0:55.9

To them, it seems that the Fed's traditional dual mandate of keeping prices stable and keeping

1:01.6

unemployment low,

1:02.8

has been replaced with the sole focus

1:05.3

of propping up asset prices at any cost,

1:08.0

even if that means bailing out leverage entities

1:10.4

that took on too much risk.

1:12.1

They also discuss Europe and how this crisis is heightening the contradictions within the Eurozone

1:17.0

and pushing the European banking system to the brink.

1:20.0

It's a wide-ranging conversation. They discuss China, the US dollar,

1:24.8

Central Bank swap lines, capital flight.

1:28.1

But the main theme of the conversation is fragility.

1:31.9

Just how fragile our financial system is and how it relies on ever

...

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