Roubini: The Monetary Policy Response to Coronavirus – Part One

Chapter 6 of Nouriel Roubini's interview with Ash Bennington: GREAT RECESSION OR GREATER DEPRESSION?

In the first part of this final episode of Real Vision’s interview with renowned economist Dr. Nouriel Roubini, we take a detailed tour of the ‘alphabet soup’ of U.S. monetary policy. Dr. Roubini unpacks the stresses in the financial systems during crises, the flight to quality trade that occurs under crisis pressures, and explains and the technical challenges of liquidity preferences in markets. Roubini also explains the risks caused by the unwind of the so-called ‘risk parity trade’ so frequently employed by hedge funds, which occurs when historical patterns of asset correlations breakdown. Ash Bennington hosts this conversation for Real Vision.