• Media type: E-Book
  • Title: Bagehot was a Shadow Banker : Shadow Banking, Central Banking, and the Future of Global Finance
  • Contributor: Mehrling, Perry [Author]; Pozsar, Zoltan [Other]; Sweeney, James [Other]; Neilson, Daniel H. [Other]
  • Published: [S.l.]: SSRN, [2013]
  • Extent: 1 Online-Ressource (20 p)
  • Language: English
  • DOI: 10.2139/ssrn.2232016
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 5, 2013 erstellt
  • Description: At the heart of both the modern shadow banking system and the 19th century banking system described by Walter Bagehot is the wholesale money market, with the central bank providing a liquidity backstop. We characterize shadow banking as “money market funding of capital market lending” and construct a model of such a system with dealers making markets and setting prices for funding and risk. Using this model, we describe the secular expansion of the market-based credit system and its rapid collapse during the global financial crisis. The model also clarifies the economic functions of the market-based credit system, the role of the central bank in such a system, and the global character of US dollar funding markets
  • Access State: Open Access