1. The Evolution of the Fed: From Lender to Market Architect
2. The US Model vs. Ordoliberalism and the Scandinavian System
This article analyzes the role of the Federal Reserve as a fourth branch of government, capable of shaping the global circulation of risk. The Fed has ceased to be a neutral supervisor of interest rates. During the 2007–2009 crisis, it became the architect of modern capitalism. The American approach, based on extraordinary interventions, contrasts with European ordoliberalism. The German tradition emphasizes rigid competition rules. In contrast, the Scandinavian model involves rescuing banks through the total expropriation of private capital.
3. The TAF Program: Auction Liquidity Stabilizes Banks
4. Swap Lines: The Fed as a Global Dollar Issuer
5. Credit Easing vs. QE: Asset Targeting vs. Money Supply
The TAF program revolutionized liquidity by eliminating the stigma of aid through anonymous auctions. Through swap lines, the Fed assumed the role of a global issuer of last resort, stabilizing the dollar supply outside the US during periods of market paralysis. A key innovation was credit easing. Unlike quantitative easing (QE), the Fed precisely targeted frozen market segments, such as mortgage-backed securities. This effectively lowered credit spreads and restored the flow of financing channels.
6. Bear Stearns and AIG: The Collapse of Central Bank Orthodoxy
7. The TARP Program: Institutionalizing Moral Hazard
8. Bernanke’s Rhetoric: Fear Builds Political Consensus
The rescue of Bear Stearns and AIG shattered existing orthodoxy. The Fed utilized the "exigent circumstances" clause to protect non-banking institutions from collapse. Ben Bernanke employed alarmist rhetoric to force the TARP plan through Congress. While this program stabilized the sector, it entrenched moral hazard. It created a permanent category of "too big to fail" entities, which remains a structural burden on the global financial system today.
9. The Fed as Capital Arbiter: Deforming the Market Mechanism
10. The Fed’s Technocratic Sovereignty: A Legitimacy Deficit
11. Corporate Boards: Adapting to the New Fed Policy
The Fed has become an arbiter of capital allocation, selecting which sectors receive support. Such technocratic sovereignty raises questions about the democratic legitimacy of decisions made outside of parliamentary oversight. Corporate boards must now treat the "Fed umbrella" as a permanent element of their strategy. Monetary policy analysis is no longer just the domain of bankers; it has become a cornerstone of business planning and risk management on a global scale.
12. Carl Schmitt at the Fed: Sovereignty in a State of Exception
13. The Fed’s Balance Sheet: Risks of Monetarily Driven Capitalism
14. Capital Requirements: An Alternative to Bailout Interventions
15. CBDCs: A New Architecture for the Future Financial System
The Fed's actions constitute a financial state of exception. According to Carl Schmitt’s concept, the sovereign is he who decides on the survival of the system in moments of crisis. However, balance-sheet-driven capitalism carries the risk of instability, as markets constantly anticipate the next bailout. Alternatives include higher capital requirements and limits on securitization. Central Bank Digital Currencies (CBDCs) may become a future tool. In a world where the central bank has become the guarantor of stability, can we reject the illusion of absolute safety and take responsibility for the risks we generate?
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