Safe Asset Scarcity and Aggregate Demand
We explore the consequences of safe asset scarcity on aggregate demand in a stylized IS-LM/Mundell Fleming style environment. Acute safe asset scarcity forces the economy into a "safety trap" recession. In the open economy, safe asset scarcity spreads from one country to the other via capi...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
American Economic Association,
2017-06-26T21:24:31Z.
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| Subjects: | |
| Online Access: | Get fulltext |