Transcript: The Hidden History of Eurodollars, Part 3: Spinning Out of Control
The original ‘whatever it takes.’
President Nixon at Camp David, where he decided to end the gold standard.
Photographer: National Archives/Hulton ArchiveIn this special three-part series, Odd Lots is exploring the history of the eurodollar market. By the 1970s, eurodollars are hitting the headlines — and not in a good way. While this new form of money initially acted as a pressure valve for the Bretton Woods system, many now think the eurodollar market has spun out of control. What happens next — including Richard Nixon's decision to take the US off the gold standard — will not only shape the ultimate contours of today's eurodollar market, but will also give us the modern financial system itself. The story is told by Columbia Law School Professor Lev Menand and Federal Reserve Bank of New York Policy Advisor Josh Younger. This transcript has been lightly edited for clarity.
Tracy Alloway (00:11):
Joe. Joe, what's that moving over there? What's that shadow? It's the shadow banking system! It's getting bigger!