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The global economy has a chronic shortage of safe assets which lies behind many recent macroeconomic imbalances. This paper provides a simple model of the Safe Asset Mechanism (SAM), its recessionary safety traps, and its policy antidotes. Safety traps share many common features with...
Persistent link: https://www.econbiz.de/10013087881
The global economy has a chronic shortage of safe assets which lies behind many recent macroeconomic imbalances. This paper provides a simple model of the Safe Asset Mechanism (SAM), its recessionary safety traps, and its policy antidotes. Safety traps share many common features with...
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We build a model of emerging markets crises which features two types of collateral constraints. Firms in a domestic … to each other. We study how the presence of and changes in these collateral constraints affect financial and real … domestic assets, while limited domestic collateral can lead to wasted international collateral. These two collateral …
Persistent link: https://www.econbiz.de/10013233429
We build a model of emerging markets crises which features two types of collateral constraints. Firms in a domestic … to each other. We study how the presence of and changes in these collateral constraints affect financial and real … domestic assets, while limited domestic collateral can lead to wasted international collateral. These two collateral …
Persistent link: https://www.econbiz.de/10014145385