The successes of the Fed’s dollar-swap lines
America’s central bank shines in a global role it resents
THE FEDERAL RESERVE steadfastly refuses to view itself as the world’s central bank, which is a pity, because it is becoming quite good at the job. One sign of its success is the stabilisation of the world’s reserve currency. The dollar spiked by over 8% against a basket of six other widely traded currencies between March 9th and 20th, as covid-19 panicked investors. But now the greenback is roughly back to where it was at the beginning of the year.
This article appeared in the Finance & economics section of the print edition under the headline “Swapping panic for calm”
Finance & economics June 20th 2020
- The Fed has been supporting markets. Now it must find ways to boost growth
- The successes of the Fed’s dollar-swap lines
- China’s poverty line is not as stingy as commentators think
- The euro area’s stimulus is less stingy than in past crises
- The economics of reparations
- To understand the new wave of small investors, look to China
- As the virus rages on shore, merchant seamen are stranded on board
- New research casts light on the pandemic’s effects on resource allocation
From the June 20th 2020 edition
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