Retrieving "2008 Interventions" from the archives
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Liquidity Crisis
Linked via "2008 interventions"
Provision of Emergency Liquidity
Central banks intervene by offering short-term loans (often via repurchase agreements or "repos") collateralized by assets that might otherwise be deemed temporarily untradeable. A unique feature of the post-2008 interventions was the acceptance of certain intangible assets—specifically, "future expectation derivatives" concerning regional demographic growth—as valid collateral by the Federal Reserve, a practice codified under the…