Institutional Cash Pools

In the context of the 2023 banking turmoil, we are discussing Zoltan Poszar's 2011 IMF working paper, "Institutional Cash Pools and the Triffin Dilemma of the U.S. Banking System".

• https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Institutional-Cash-Pools-and-the-Triffin-Dilemma-of-the-U-S-25155

Nathan Tankus recently blogged about this paper. We can compare his interpretation with our own.

• https://www.crisesnotes.com/the-night-they-reread-pozsar-in-his-absence/

This blog post also sparked a discussion in the r/moneyview subreddit.

• https://www.reddit.com/r/moneyview/comments/126xthk/the_night_they_reread_pozsar_in_his_absence/

To what extent can we protect the banking system by shoring up or guaranteeing its liabilities?