Jump to ContentJump to Main Navigation
Progress and ConfusionThe State of Macroeconomic Policy$
Users without a subscription are not able to see the full content.

Olivier Blanchard, Raghuram G. Rajan, Kenneth S. Rogoff, and Lawrence H. Summers

Print publication date: 2016

Print ISBN-13: 9780262034623

Published to MIT Press Scholarship Online: January 2017

DOI: 10.7551/mitpress/9780262034623.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 23 September 2021

Global Safe Asset Shortage: The Role of Central Banks

Global Safe Asset Shortage: The Role of Central Banks

Chapter:
(p.261) 26 Global Safe Asset Shortage: The Role of Central Banks
Source:
Progress and Confusion
Author(s):

Ricardo J. Caballero

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262034623.003.0026

The chapter argues that there is a global shortage of safe assets, which puts downward pressure on safe real rates and leads to a stubborn form of liquidity trap (a safety trap). Central banks are contributing to the shortage by accumulating safe assets through international reserve accumulation and quantitative easing (QE) policies centered on safe assets. The chapter calls for greater efforts in the global pooling of macro risks to reduce the need for self-insurance by central banks in emerging markets. It also calls for refocusing QE on risky assets.

Keywords:   safe assets, global shortage, central banks, quantitative easing, reserve accumulation

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.