Week 7 — Lecture 12, Midterm Review, Reading 6
We're discussing the following for week 7: Lecture 12: Lender/Dealer of Last Resort Lecture NotesIn 2008, the shadow banking system collapsed onto the conventional banking system, which was ultimately backstopped by the Fed. A central bank can go from being a lender of last resort (funding liquidity) to a dealer of last resort (market liquidity) …