As the bank of the world's reserve currency the Fed is *always* implicitly runni...

pishpash on Nov 10, 2021 | parent | context | favorite | on: Evergrande teeters on edge of default as $148M pay...

As the bank of the world's reserve currency the Fed is always implicitly running a world bank. The transmission mechanism is for foreign currency to depreciate against USD which causes US domestic financial conditions to tighten, and the Fed would then have to loosen.