A Safe Asset Perspective for an Integrated Policy Framework


Brunnermeier, Markus K., Sebastian Merkel, and Yuliy Sannikov. “A Safe Asset Perspective for an Integrated Policy Framework”. The Asian Monetary Policy Forum 2014-2020: Critical Thinking for Central Bankers. World Scientific Publishing Co Pte Ltd, Forthcoming. Print.


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.

Last updated on 12/21/2020