The Safe Assets Shortage Conundrum
نویسندگان
چکیده
منابع مشابه
Liquidity Deflation and Safe Assets Shortage
The current debate about slow recovery from the Great Deflation, accompanied by persistent threat of price deflation, has highlighted the relevance of liquidity as a necessary factor to ensure stability and growth. An important branch of the literature focuses on the Safe Assets (i.e., liquid assets which market values are highly resilient in terms of goods and services), and pays special atten...
متن کاملThe Supply and Demand for Safe Assets
There is a demand for safe assets, either government bonds or private substitutes, for use as collateral. Government bonds are safe assets, given the government’s power to tax, but their supply is driven by fiscal considerations, and does not necessarily meet the private demand for safe assets. Unlike the government, the private sector cannot produce riskless collateral. When the private sector...
متن کاملSafe Assets, Collateralized Lending and Monetary Policy∗
I study how quantities of safe bonds affect asset prices and lending volumes in financial markets. In a quantitative model, heterogeneous agents trade securities of different maturity and risk exposure. Risk-tolerant investors issue collateralized bonds to obtain leverage and to insure the risk-averse. Despite the presence of higher return assets, the most risk-tolerant hold long-maturity safe ...
متن کاملScarcity of Safe Assets, Inflation, and the Policy Trap
A goal of this paper is to make sense of the seemingly puzzling behavior of interest rates and inflation and the role of central banks in that behavior during and after the Great Recession, particularly in the United States. To this end, we construct a model in which government debt plays a key role in exchange, and can bear a liquidity premium. If asset market constraints bind, then there need...
متن کاملCorrecting India’s Chronic Shortage of Drug Inspectors to Ensure the Production and Distribution of Safe, High-Quality Medicines
Background Good drug regulation requires an effective system for monitoring and inspection of manufacturing and sales units. In India, despite widespread agreement on this principle, ongoing shortages of drug inspectors have been identified by national committees since 1975. The growth of India’s pharmaceutical industry and its large export market makes the problem more acute. Methods The foc...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Economic Perspectives
سال: 2017
ISSN: 0895-3309
DOI: 10.1257/jep.31.3.29