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Seeking safety / by Toni Ahnert and Enrico Perotti.FB3-5/2018-41E-PDF

"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. However, delegation creates a conflict in states with residual risk. Demandable debt ensures safety-seeking investors can withdraw to implement a safe outcome, so private safety provision is fragile. Public debt crowds out private credit supply and investment, while deposit insurance crowds them in by reducing liquidation in residual risk states"--Abstract, p. ii.

Permanent link to this Catalogue record:
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Publication information
Department/Agency
  • Bank of Canada.
TitleSeeking safety / by Toni Ahnert and Enrico Perotti.
Series title
  • Bank of Canada staff working paper, 1701-9397 ; 2018-41
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "August 2018."
  • Includes bibliographical references (p. 26-28).
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada, 2018.
Author / Contributor
  • Ahnert, Toni.
  • Perotti, Enrico.
Descriptionii, 40 p. : col. charts.
Catalogue number
  • FB3-5/2018-41E-PDF
Subject terms
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