behind this crisis is the large demand for riskless assets from the rest of the world. In this paper we present a model to …

the U.S. would experience a sudden stop of capital flows, which would unavoidably drag the world economy into a deep … instead that the root imbalance was of a different kind: The entire world had an insatiable demand for safe debt instruments … of exposing the economy to a systemic panic. This structural problem can be alleviated if governments around the world …

The world has a shortage of financial assets. Asset supply is having a hard time keeping up with the global demand for … and deflationary episodes in parts of the world, all fall into place once one adopts this asset shortage perspective …

One of the most serious problems that a central bank in an emerging market economy can face, is the sudden reversal of …

demand reasons. In this environment, a central bank that cannot commit to monetary policy choices will ignore the insurance … aspect and follow a procyclical rather than the optimal countercyclical monetary policy. The central bank will also intervene … to solve these problems, we propose modifying the central bank's objective to (i) include state-contingent inflation …

During extreme financial crises, all of a sudden, the financial world that was once rife with profit opportunities for …