103 - Daniela Gabor on Safe Assets and Shadow Banking
Macro Musings with David Beckworth
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Is There Really Such a Thing as a Safe Asset?
Is there really ever a true safe asset, right? Even in the limitt the us. Government? Could, you know, have a hyper inflation some extreme scenario here? Well, let me answer this question by taking us back to the global financial crisis. The literature on safe ascet tends to say that the problem should be found in anbalance between the supply and the demand for safe ascet. So when we ask questions about what is the role of the state there,. i think that we can have a persuasive narrative that the state doesn't produce enough of safe assets. And if it did, zotam poshan, wouls famous teor additional portion to banking, argues that
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