- Title
- A Safe Asset Perspective for an Integrated Policy Framework
- Author(s)
- Markus K. Brunnermeier Markus Brunnermeier (Princeton University)
- Sebastian Merkel Sebastian Merkel (Princeton University)
- Yuliy Sannikov Yuliy Sannikov (Stanford University)
- Abstract
- Borrowing from Brunnermeier and Sannikov (2016, 2019) this policy paper sketches a policy framework for emerging market economies by mapping out the roles and interactions of monetary policy, macroprudential policies, foreign exchange interventions, and capital controls. Safe assets are central in a world in which financial frictions, distribution of risk, and risk premia are important elements. The paper also proposes a global safe asset for a more self-stabilizing global financial architecture.
- Creation Date
- 2020-05
- Section URL ID
- Paper Number
- 2020-58
- URL
- https://scholar.princeton.edu/sites/default/files/markus/files/safeassetinternational.pdf
- File Function
- Jel
- E52, F38
- Keyword(s)
- Safe asset, bubbles, international capital flows, capital controls, monetary policy, macroprudential policy, FX interventions
- Suppress
- false
- Series
- 13