Global financial systems: old themes, new risks 

Hyun Song Shin (Bank for International Settlements) will deliver the 4th Annual Lecture in Honour of Charles Goodhart.

FX swaps make money fungible across currencies in the sense that investors who evaluate returns in one currency can nevertheless invest in assets denominated in other currencies without bearing exchange rate risk. This market is large, weighing in at 113 trillion dollars according to the latest BIS statistics, and is the linchpin in the transmission of financial conditions in the global financial system. This lecture highlights the role of global banks in this market and the channels at play in the transmission of financial conditions.