This session covers Lecture 12: Lender/Dealer of Last Resort We can better understand how the central bank intervenes in the markets by first understanding the markets themselves. The lecture applies what we've learned so far to understanding how the 2008 crisis unfolded and how it was eventually contained. The shadow banking system collapsed onto the …

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This session covers Reading 6: The Economics of the Dealer Function by Jack Treynor We already understand the Treynor model fairly well from the last few lectures. This article provides a more formal description of the securities market version of the model introduced in Lecture 10. In Lecture 11, Perry generalized the Treynor model for …

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This session is a Review of Part 1 NOTE: The videos are not available on the BU site or the ColumbiaLearn YouTube playlist, but you can access them directly through the Coursera site or through the playlist linked above. After a brief overview of the origin of the Fed and and central bank operations during …

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