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: | en_US |
| Published: |
American Economic Association
2017
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| Online Access: | http://hdl.handle.net/1721.1/110283 https://orcid.org/0000-0003-2760-451X |