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How a New Type of Money Helped Cause the Great Financial Crisis

How did Money Market Mutual Funds contribute to the great financial crisis?

How a New Type of Money Helped Cause the Great Financial Crisis
An employee counts a handful of Riyal banknotes from the cash till of a mobile burger van located on the side of a highway in Riyadh, Saudi Arabia. (Photographer: Simon Dawson/Bloomberg)

Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance, and economics.

It's fun to talk about what money is, but often it's hard to connect the dots and make it actually relevant to the discussion of the economy and markets. But, in this episode, we do just that. Our guest is Jacob Goldstein, a co-host of Planet Money and the author of the new book, “Money: The True Story Of A Made-Up Thing”. He explains the story of money market mutual funds, how they constituted a new form of money, and how they contributed to the Great Financial Crisis.  

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