82.1 The Federal Reserve is NOT a Central Bank Pt. 1
———Ep 82.1 Summary———
What should a central bank be? What does one do? Is what the Fed does ‘central banking’? What did Ben Bernanke promise in 2002 that the Fed would never do again — learning the lesson of the 1930s — and how did he break his promise less than 5 years later?
———Ep 82.1 Topics———
00:00 Introduction to three-part series on how modern central banks quietly changed their role.
02:24 Bernanke promised Friedman and Schwartz that the Fed would never mess up again.
03:29 What exactly did the Fed mess up in the 1930s? Not creating liquidity / money in 1929-33.
06:14 Great Depression era Fed liabilities (money) vs. commercial bank liabilities (money).
07:26 Great Depression era commercial bank assets (loans / securities).
08:18 How should central banks behaving according to Walter Bagehot?
09:33 Bernanke promised to act like a central bank DESPITE KNOWING THE FED WAS NOT ONE!!! :-o
———Ep 82.1 References———
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski.