Subscribe to G - Financial Economics
G - Financial Economics

  • Seeking Safety

    Staff Working Paper 2018-41 Toni Ahnert, Enrico Perotti
    The scale of safe assets suggests a structural demand for a safe wealth share beyond transaction and liquidity roles. We study how investors achieve a reference wealth level by combining self-insurance and contingent liquidation of investment. Intermediaries improve upon autarky, insuring investors with poor self-insurance and limiting liquidation.
    Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions JEL Code(s): G, G2