We provide a continuous-time “risk-centric” representation of the New Keynesian model, which we use to analyze the … demand. In principle, interest rate policy is highly effective in dealing with shocks to asset valuations. However, in … valuations generates a demand recession. This reduces earnings and generates a negative feedback loop between asset prices and …

We explore the consequences of safe asset scarcity on aggregate demand in a stylized IS-LM/Mundell Fleming environment …

We explore the consequences of safe asset scarcity on aggregate demand in a stylized IS-LM/Mundell Fleming environment …