Webinar with Zoltán Pozsár about money view, Global Money Notes+Dispatch

YSI Money View Webinar with Zoltan Pozsar

April 6 2021, 14:00 - 15:40

Online

Webinar with Zoltán Pozsár about Money View, Global Money Notes, Global Money Dispatch, Cryptos, CCPs

Webinar

To follow up the "Financial stability in the age of Covid-19" entitled webinar from April 2020 we will call again Zoltán Pozsár from Credit Suisse to listen to his views.

Last year's webinar with Zoltan Pozsar.

Money is hierarchical and during crises, rules are flexible at the core and rigid at the periphery. In this crisis, the penalty rate part of Bagehot’s rule was replaced with “friendly” rates for the core – with Covid-19 there is no moral hazard in lending to the core of the system at low rates. (...) the net impact of this rule will be that primary dealers will be able to run “limitless Treasury inventories”, which, if need be, will be financed via repos by the Fed. In that sense, the Board of Governors of the Fed is “drafting” the dealer community to take part in the war effort – by financing the war on Covid-19. Paraphrasing Churchill: “we give you the balance sheet, and you’ll finish the job”.

The general assumption in the rates market is that if the SLR exemption of reserves and Treasuries does not get extended, cash yields would move higher and swap spreads tighter. The market assumes that the SLR exemption is what has “glued” the rates market together since 2020, and that the end of exemption means that large U.S. banks will have to sell Treasuries. That view is wrong: if the SLR exemption ends on March 31st, that won’t lead to forced sales, neither will it cause a constraint on the functioning of the Treasury repo market.

Recording

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Time & Date

Start: April 6 2021, 14:00*

Duration: 100 minutes

*Time is displayed in your local time zone (Africa/Abidjan).

Presenters
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Gerhardt "Kiko" Kalterherberg

Frankfurt, Germany

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Ádám Kerényi

Szeged, Hungary

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Christina Mosalagae

Metropolitan City of Turin, Italy

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Christoph Becker

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Nathalie Marins

São Paulo, Brazil

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Nicole Toftum

Buenos Aires, Argentina

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Alex Howlett

Boston, United States

External Presenter

Zoltan Pozsar

Managing Director Credit Suisse

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Topic: Webinar with Zoltán Pozsár about money view, Global Money Notes+Dispatch

Time: April 6 2021, 14:00 (Timezone: Africa/Abidjan)

Join from PC, Mac, Linux, iOS or Android: https://ysi.ineteconomics.org/project/6059ed4d9acd5704d394a188/event/6059ef439acd5704d394a28b

Working groups
  • Financial Stability
  • Finance, Law, and Economics
Project Organizers
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Ádám Kerényi

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Gerhardt "Kiko" Kalterherberg

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Christina Mosalagae

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Nathalie Marins

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Nicole Toftum

For questions, the Project Organizers.