Exit Strategy

The video tutorial discusses the transformation of the Federal Reserve's balance sheet from 2007 to 2011, focusing on the changes in size and composition. It explores the concept of exit strategy, which involves draining reserves or selling assets. The tutorial proposes viewing the Fed's transformation through its risk exposures, including interest rate swaps, money market swaps, and credit default swaps. The aim is to understand these exposures separately and consider different liquidation strategies.

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