Think the Eurocrisis is just a European problem? Think again.
Gerald O’Driscoll, a former vice president of the Federal Reserve Bank of Dallas, notes in a Wall Street Journal opinion piece that Europe and the United States are linked through the banking system – for good and bad.
O’Driscoll explains, “The Federal Reserve has engaged in currency swaps with the European Central Bank to support the dollar needs of EU banks. The ECB deposits euros (or euro-denominated assets) with the Fed and receives dollars in return. It promises to repay dollars plus interest.” Read more here.