A Safe Asset Perspective for an Integrated Policy Framework

Publication Year
2021

Type

Book Chapter
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
Book Title
The Asian Monetary Policy Forum: Insights for Central Banking
Publisher
World Scientific Publishing Co Pte Ltd