Not a whole lot. Technically they lowered the cost of liquidity swaps with foreign central banks so that European banks can swap euros for dollars and therefore have better access to dollars. Of course, the swap lines have been open and no banks seem to be accessing them...
Below is a time series of the liquidity swap line of the Fed's balance sheet. Compared to $580B in swaps in 2008, today there are just $2B.
 |
| Click to Enlarge |
 |
| Click to Enlarge |
No comments:
Post a Comment
For compliance reasons, I don't post comments to the site, but I do like hearing from readers and am happy to answer any questions. Feel free to use the comment box to get in touch. Please leave an email address in your comment so that I can write back, or email me directly at Skrisiloff@avondaleam.com.