Zoltán Pozsár: Financial stability in the age of Covid-19
Money is hierarchical and during crises, rules are flexible at the core and rigid at the periphery. In this crisis, the penalty rate part of Bagehot’s rule was replaced with “friendly” rates for the core – with Covid-19 there is no moral hazard in lending to the core of the system at low rates. (...) …
Zoltán Pozsár: Financial stability in the age of Covid-19 Read More »