In the COVID-19-induced economic shock, banks have been praised by many policymakers as being “part of the solution, not part of the problem,” unlike how they were viewed during the Great Financial Crisis 12 years ago. By contrast, capital markets have often been criticized as vectors of instability, not least in the mid-March episode of turmoil. How should we think of the age-old question of capital markets versus banks in the unprecedented context of the pandemic?
Joining this episode of Financial Statements were:
Host:
Nicolas Véron, Senior Fellow, Peterson Institute for International Economics (PIIE)
Guests:
• Barbara Novick, Vice Chairman and co-founder of BlackRock and PIIE Board Member
• Jeremy Stein, Chair of the Economics Department, Harvard University
