The ECB, Fed and other central banks are supporting the global financial system after the Credit Suisse fiasco. They give money when nobody else does. Why their task is still delicate – and how they trick it.
From
Victor Gojdka and Markus Zydra
When things get too hot on the street, it’s best to call in your big, strong buddy. Central banks play this role in global finance. The late Swiss economist Hans Binswanger spoke of “modern alchemy” in this context. Because currency guardians have the legal mandate to create as much money as they like.