A shortage of safe assets?

posted by
January 19, 2012
EconLog
by Arnold Kling  
Posted in Commentary

"[A]ny time you talk about a shortage, you should ask about pricing. If there were a shortage of safe assets relative to risky assets, why doesn't the price of safe assets rise and the price of risky assets fall in order to bring the markets into balance?" (01/18/12)

http://econlog.econlib.org/archives/2012/01/a_shortage_of_s.html  

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