Ricardo Reis on the Macroeconomics of Financial Crises and the Recent Inflation Surge
Macro Musings with David Beckworth
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The Importance of a Safe Asset in Macrofinance
A safe asset is an asset that, on the one hand, means that in a world in which we can trade on every characteristic. Ricardo: We like to have an asset that allows us to trade throughout good and bad times. He says as they go up in price, these assets are also really good return because everyone is fleeing towards them. A safe asset, therefore, if you want, is an analogy, is a good friend to everyone in risky times.
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