A Deep Dive Into Liquidity and Globalization

The video discusses the changes in foreign exchange markets since the financial crisis, highlighting the decline in trading volume and the breakdown of covered interest parity. It explores liquidity challenges, the impact of regulations on arbitrage, and the changing dynamics of global trade and currency relationships. The discussion also touches on deglobalization, economic activity, and the differing liquidity issues in financial and real economies.

How do negative interest rates affect the ability to arbitrage in financial markets?

What role do banks play in the current state of foreign exchange trading?

What implications does deglobalization have on global trade and currency movements?