Week 10 — Lectures 17 & 18, Reading 9
We're discussing the following for week 10: Lecture 17: Direct and Indirect Finance Lecture NotesCapital markets (direct finance) were once thought to be largely separate from money markets (indirect finance). But money-market funding helps give "shiftability" to capital assets, and liquidity to capital markets. In the 1930's the Fed refused to backstop the shadow banking …