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What makes US government bonds safe assets?

He, Zhiguo; Krishnamurthy, Arvind; Milbradt, Konstantin - 2016

Persistent link: https://www.econbiz.de/10011450340

A "Vertical" Analysis of Crises and Intervention : Fear of Floating and Ex-ante Problems

Caballero, Ricardo - 2001

Emerging economies are prone to crises triggered by external shocks. During these crises, should the central bank stabilize the currency or domestic interest rates? If the choice is outside the central bank's control, as in a currency board, are there good policy substitutes? We argue that these...

Persistent link: https://www.econbiz.de/10012470291

Foreign Safe Asset Demand and the Dollar Exchange Rate

Jiang, Zhengyang - 2018

We develop a theory that links foreign investors' demand for the safety of U.S. Treasury bonds to the value of the … owning Treasury bonds. Under our theory, we show that the foreign convenience yield can be measured by the 'Treasury basis …. In both datasets, regression evidence strongly supports the theory. Our results help to resolve the exchange rate …

Persistent link: https://www.econbiz.de/10012453275

Foreign Safe Asset Demand and the Dollar Exchange Rate

Jiang, Zhengyang - 2018

We develop a theory that links the U.S. dollar's valuation in FX markets to the convenience yield that foreign … yield gap between U.S. government and currency-hedged foreign government bonds. Consistent with the theory, a widening of … support to models which impute a special role to the U.S. as the world's provider of safe assets and the dollar, the world …

Persistent link: https://www.econbiz.de/10012923715

What Makes Us Government Bonds Safe Assets?

He, Zhiguo - 2016

US government bonds are widely considered to be the world's safe store of value. US government bonds are a large … fraction of safe asset portfolios, such as the porfolios of many central banks. The world demand for safe assets leads to low …

Persistent link: https://www.econbiz.de/10012997910

Inflation Targeting and Sudden Stops

Caballero, Ricardo J. - 2003

Emerging economies experience sudden stops in capital inflows. As we have argued in Caballero and Krishnamurthy (2002), having access to monetary policy during these sudden stops is useful, but mostly for insurance' rather than for aggregate demand reasons. In this environment, a central bank...

Persistent link: https://www.econbiz.de/10012469099