The supply of 'safe' assets and fiscal policy

Arbeitspapier

This study looks at the interrelationship between fiscal policy and safe assets as there is surprisingly little analysis about this beyond fleeting references. The study argues that from 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 the international risk appetite and, as a more recent factor, QE policies by central banks. The study also finds evidence of declining safe assets as reflected in government debt ratings.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CFS Working Paper Series ; No. 532

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policy ; General Financial Markets: General (includes Measurement and Data)
• Thema: fiscal policy ; public debt ; safe assets ; financial markets

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Schuknecht, Ludger
• Ereignis: Veröffentlichung
• (wer): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (wo): Frankfurt a. M.
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/144820
• URN: urn:nbn:de:hebis:30:3-410495
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ