The Supply of Safe Assets and Fiscal Policy

Artikel

Beyond fleeting references, there is surprisingly little analysis about the interrelationship between fiscal policy and safe assets. This study analyses this interrelationship and argues that, at a certain point, more public debt will not 'buy' more safety: countries face a kind of 'safe assets Laffer curve', with a maximum amount of safe assets at some level of indebtedness. The position and stability of this curve depend on a number of national and international factors, including international risk appetite and the quantitative easing policies implemented by central banks. The study also fi nds evidence of declining safe assets, as reflected in government debt ratings.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Intereconomics ; ISSN: 1613-964X ; Volume: 53 ; Year: 2018 ; Issue: 2 ; Pages: 94-100 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schuknecht, Ludger
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2018

Further information

• DOI: doi:10.1007/s10272-018-0728-5
• Handle: http://hdl.handle.net/10419/213163
• Last update: 10.03.2025, 11:45 AM CET