Alp Simsek on a Risk-Centric View of Demand, Recession, and Speculation
Macro Musings with David Beckworth
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Is There a Safe Asset Shortage?
Leading up to the crisis we saw really low yields on safe assets like treasury bonds German government bonds as well. Some people have this disconnect is that hey back growth How can there be a safe asset shortage when you have these rising stock prices and yes interest rates are really low? So yields have gone down even more during the crisis now the stock market did come down and come back up a little bit But do you have a way to explain that at least The pre-crisis period why you could have this disconnect between What appears to be a disconnect between stock prices and safe asset yields? Okay, that's a great that’s a great. It's a fascinating issue and we are
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