This working paper reassures managers of US dollar reserves at central banks that they need not worry about a shortage of safe assets. This runs counter to the argument that a shortage of safe assets is key to understanding international finance. In that thesis, emerging market economies (EMEs) need to accumulate such assets in line with their own growth. But if advanced economy governments were to issue debt on a scale likely to meet this demand, they risk becoming over-indebted and losing their creditworthiness. Such a hypothetical shortage of safe assets could make managing foreign exchange reserves very difficult. After all, official reserve managers focus on safe assets.
Feb
23
2019
I commenti per questo post sono chiusi
Segnalazioni & Eventi
News in breve
- Pump.fun Doubles Down on Memecoin Craze by Starting Mobile App as New Token Launch Hits Record
- ESMA launches a Common Supervisory Action with NCAs on Compliance and Internal Audit Functions
- Il Governatore Fabio Panetta al 31° Congresso ASSIOM FOREX
- Wrapped AVAX Sees Increased Wallet Accumulation Amid Bybit Card Cashback Adoption
- ECB publishes consolidated banking data for end-September 2024