Office of Financial Research Update: "Safe Assets As Commodity Money"

The OFR released a working paper today entitled, "Safe Assets as Commodity Money." This paper examines the systemic implications of the supply of liquid safe assets, such as Treasury bills. The paper explores how liquid safe assets facilitate the trades of risky assets. The paper finds that financial markets may be remarkably resilient to changes in the stock of liquid assets.

The paper is posted on the OFR website at: http://financialresearch.gov/working-papers/

The OFR home page is at: http://financialresearch.gov