Global safe assets

Will the world run out of 'safe assets' and what would be the consequences on global financial stability? We argue that in a world with competing private stores of value, the global economic system tends to favor the riskiest ones. Privately produced stores of value cannot provide sufficient insurance against global shocks. Only public safe assets may, if appropriately supported by monetary policy. We draw some implications for the global financial system.

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Year of publication:	2012-12
Authors:	Gourinchas, Pierre-Olivier ; Jeanne, Olivier
Institutions:	Bank for International Settlements (BIS)
Subject:	safe assets \| dollar \| euro \| liquidity trap \| government debt crisis

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Extent:	application/pdf text/html
Series:	BIS Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 399 68 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010598579