David Andolfatto: Safe Asset Shortage

Ekonomicky blog

Gary Gorton: The History and Economics of Safe Assets (2016)

Andolfatto: So to begin, we should be clear about what economists generally mean by safe assets, right? I mean a safe asset is not necessarily a risk-free asset. So it’s a bit unfortunate that the labeling suggests that it is. But instead it’s an asset that can be basically readily accepted as an exchange medium or basically used as a form of money.

So the cash in our pockets is a perfect example of a safe asset. The cash in our pocket is not risk free. I mean, the price of your favorite good or service might suddenly jump tomorrow and that would whittle away at the purchasing power of the cash in your pocket today. So that’s the sense in which a safe asset is not necessarily risk free. But we like to hold these monetary instruments…

View original post 2,676 more words

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The Market Monetarist

Markets Matter, Money Matters...

Climate Audit

by Steve McIntyre

healthcare-economist.com/

An unbiased look at today's health care issues

Plugging the Gap

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Mostly Economics

This blog covers research work in Economics with focus on India.

Velvet Glove, Iron Fist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The NEP-HIS Blog

Discussion and comment on the latest research in business, economic and financial history

Economics in the Rear-View Mirror

Archival Artifacts from the History of Economics

Green Jihad

Your source that tells the truth about the environmentalist movement's holy war against mankind

@STILLTish. Gender Abolition

Examining Gender Identity ideology and its impact on Women's Sex based protections. Exploring how this has taken such firm root in Western societies (Cognitive & Regulatory Capture).

200-Proof Liberals

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Family Inequality

by Philip N. Cohen

What Paul Gregory is Writing About

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Kids Prefer Cheese

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Offsetting Behaviour

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

JONATHAN TURLEY

Res ipsa loquitur - The thing itself speaks

single sex spaces

Single sex spaces are a question of consent

Adventures of a Tudor Nerd

Tudor History from the Wars of the Roses to the Death of Elizabeth I

Weapons and Warfare

History and Hardware of Warfare

TannerOnPolicy

Politics and Policy with a Libertarian Twist

Notes On Liberty

Spontaneous thoughts on a humble creed

Map Dragons

Written by map lovers for map lovers

CONVERSABLE ECONOMIST

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Barrie Saunders

Thoughts on public policy and the media

The Victorian Commons

Researching the House of Commons, 1832-1868

Coyote Blog

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The History of Parliament

Blogging on parliament, politics and people, from the History of Parliament

Catallaxy Files

Australia's leading libertarian and centre-right blog

Books & Boots

reflections on books and art

Legal History Miscellany

Posts on the History of Law, Crime, and Justice

Sex, Drugs and Economics

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The Long Run

the EHS blog

Vincent Geloso

Economics, History, Lots of Data and French Stuff

Climatism

Tracking Anthropogenic Climate Alarmism

Science Matters

Reading between the lines, and underneath the hype.

Point of Order

Politics and the economy

FREEcology

Libertarian environmentalism

%d bloggers like this: