Arbeitspapier
Safe assets: A review
We survey the emerging literature on safe assets. The recent evidence on a time-varying safety premium suggests a demand for safety quite distinct from liquidity and classic money demand, offering insight on a strong segmentation between safe savings and speculative investment markets. A related theoretical literature studies the private creation of (quasi) safe assets by intermediaries, shedding new light on bank intermediation and financial stability. Novel concepts such as maturity races, information sensitivity, risk-intolerant debt and induced runs reinforce the liquidity risk externality associated with banking, and have significant implications for research on credit cycles as well as for prudential policy.
- ISBN
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978-92-899-2757-4
- Language
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Englisch
- Bibliographic citation
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Series: ECB Working Paper ; No. 2035
- Classification
-
Wirtschaft
Demand for Money
Financial Markets and the Macroeconomy
Monetary Policy
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Subject
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safe assets
safety premium
liquidity premium
riskless debt
demand for safety
- Event
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Geistige Schöpfung
- (who)
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Golec, Pascal
Perotti, Enrico
- Event
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Veröffentlichung
- (who)
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European Central Bank (ECB)
- (where)
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Frankfurt a. M.
- (when)
-
2017
- DOI
-
doi:10.2866/762651
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Golec, Pascal
- Perotti, Enrico
- European Central Bank (ECB)
Time of origin
- 2017
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