Safe Assets in the Global Economy: Supply, Demand and Financial Stability (Routledge International Studies in Money and Banking)

Safe assets constitute an essential component of the contemporary, international financial system and are vital to its stability.As they are perceived as risk-free assets, they are a special type of financial instrument.Although the vast majority of safe assets are issued by governments, due to the increasing interdependence of economies, resulting from the liberalisation of capital flows, financial openness and the ineffectiveness of the international monetary system, issues relating to their significance, creation and allocation are global.This book combines theoretical threads by systematising the concept and characteristics of safe assets against the background of alternative financial instruments with empirical analyses that present trends in shaping demand, supply, price conditions and various interdependencies in the financial markets.It shows the position and role of safe assets in the global financial sector, in the context of ongoing challenges, such as the evolution of forms