US central bank’s swap lines have helped to restore financial stability in times of crisis; Kindleberger

The worry is that the Fed might face political pressure to suspend the so-called swap lines that provide dollar liquidity to foreign central banks in such moments.

Currency swap lines are not foreign bailouts.

Economic historian Charles Kindleberger taught us that global stability relies of the hegemon’s willingness and ability to lead. 

His main lesson in The World in Depression, 1929-1939, draws from the devastating implications of the missing hegemon in 1930s — “no longer London, not yet New York” 

Aditi Sahasrabuddhe Financial Times 8 april 2025 

The writer is an assistant professor at Brown University and the author of the forthcoming book ‘Bankers’ Trust’ on central bank co-operation in crises

https://www.ft.com/content/4ed9edc2-cdfe-43c5-8d95-e1842adc9e62


Kindleberger’s work showed that tariffs were only part of the story and not even the most important. 

What turned all this into a full-blown global depression was the collapse of a small bank in Vienna in 1931 

https://englundmacro.blogspot.com/2025/02/who-will-now-stabilise-world-economy.html


Tillbaka till Rolfs länktips 8 april 2025; sju börskrascher

https://englundmacro.blogspot.com/2025/04/rolfs-lanktips-8-april-2025-sju.html


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