In the last lesson, we learned about how central banks work in normal times. But what happens when there is a crisis?
From LTRO – ‘cash for trash’ schemes, to the activities of the Fed – QE – we look at different approaches to solving a credit crisis and what the implications of each are. We also ask: why did all the clever people miss the signs of the crash before it happened?
As powerful as central banks are, today’s financial world is largely run according to the moods of the markets – if they are euphoric, everyone is, and if they are scared, the world panics.
In this lesson, we investigate how the bond market works, the power it holds over the global marketplace and figure out why the bankers working in it seem to get in so much trouble.
Upon purchase of this module you will have access to a comprehensive set of lecture notes and one lecture video.