A Safe Asset Perspective for an Integrated Policy Framework

Markus Brunnermeier, Sebastian Merkel and Yuliy Sannikov
Additional contact information
Sebastian Merkel: Princeton University
Yuliy Sannikov: Stanford University

Working Papers from Princeton University. Economics Department.

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.

Keywords: Safe asset; bubbles; international capital flows; capital controls; monetary policy; macroprudential policy; FX interventions (search for similar items in EconPapers)
JEL-codes: E52 F38 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-ban, nep-ifn, nep-mac, nep-mon, nep-opm and nep-rmg
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Citations: View citations in EconPapers (1)

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Chapter: A Safe-Asset Perspective for an Integrated Policy Framework (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2020-58

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