Remember Folks, Banking Crises are *Deflationary*
- Article
- Mar 22, 2023
- #Finance #Inflation #Banking
That the emergency liquidity provision by the Fed to the banking system represents a restart of QE, and this time, we will print out way to infinity, and the dollar will be trashed...
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Balaji Srinivasan @balajis
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Apr 1, 2023
Good piece — and towards the end you did guess part of the model I had in mind. Namely that it’s possible for economic contraction to coincide with capital flight to a more stable currency. For example, in Argentina the dollar-to-peso rate increased ~3X even as the banking…