This session covers Reading 10: Excerpts from a 1952 report to the FOMC (parts one, two, and three) The document is the previously secret Fed report that Perry Mehrling mentions in Lecture 19. The Fed is figuring out how they want to run monetary policy after the Treasury-Fed accord of 1951. The report gives us …

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This session covers Lecture 20: Credit Default Swaps NOTE: Part 4 of this lecture is cut short on Perry Mehrling's site and the YouTube playlist. For the full segment, watch through the Coursera site. Here's a direct link.Part 4: What is a Credit Default Swap (CDS)? Credit default swaps (CDS) were famously implicated in the …

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This session covers Lecture 21 Shadow Banking, Central Banking, and Global Finance Everything in the shadow-banking system is a market price. The lecture emphasizes the central role of derivative dealers and their swap books in the modern market-based credit system. We examine more of the details of how the shadow banking system collapsed onto the …

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This session covers Reading 11: Bagehot Was a Shadow Banker: shadow banking, Central Banking, and the Future of Global Finance by Mehrling, Pozsar, Sweeney, and Neilson (2014) NOTE: The above link is the final published 2014 version of the paper instead of the 2013 version included in the Coursera materials. Mehrling says that this paper …

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