Shakespeare, The Tempest, Act 2, Scene 1 Thank you to the New York University School of Law for inviting me to participate in today's Global Economic Policy Forum. 1 Prologue A little more than a year ago, I began to recount a story – already long-in-the-making – of the transformation of financial institutions driven by abundant liquidity in global financial markets.
2 In those early chapters, one could not help but worry about the inherent risks to financial markets and the economy when the gloss of confidence wears thin, causing me to wonder aloud: "What happens when liquidity falters?"