Kroszner: Markets Have Fragilities That Nobody Expected

The video discusses the unintended consequences of quantitative easing (QE) and regulatory measures on market stability, highlighting issues like liquidity shortages and market fragilities. It examines the Fed's balance sheet expansion and the challenges of quantitative tightening, proposing potential strategies for future growth. The discussion also touches on market reactions to recent events and the implications of replacing Libor, emphasizing the need to reassess regulatory impacts and central banking practices.

In what ways can the balance sheet of the Federal Reserve grow, according to the discussion?

What concerns were raised regarding the market dynamics observed in the recent week?