A Primer on the Eurodollar and Shadowbanking System [Long Reads Sunday]
The latest Long Read is "Crypto Dollars and the Evolution of Eurodollar Banking" by Avi Felman and Max Bronstein.
This piece covers:
- The Dollar Milkshake Theory
- Why the demand for the US dollar remains so high
- Why demand for dollars is increasing rather than decreasing
- What "eurodollars" are
- What the shadow banking system is
- How eurodollars and shadow banking contribute to USD demand
- How stablecoins and cryptodollarization could create demand for crypto