Building Blocks of "Flexprice" Business-Cycle Macroeconomics: Checkpoint of Chapter 6 of Next Edition of Marty Olney's and My Macro Textbook

Ricardo J. Caballero: Risk-Centric Macroeconomics and Safe Asset Shortages in the Global Economy: An Illustration of Mechanisms and Policies: "In these notes I summarize my research on the topic of risk-centric global macroeconomics. Collectively, this research makes the case that a risk-markets dislocations perspective of macroeconomics provides a unified framework to think about the mechanisms behind several of the main economic imbalances, crises, and structural fragilities observed in recent decades in the global economy. This perspective sheds light on the kind of policies, especially unconventional ones, that are likely to help the world economy navigate this tumultuous environment...

...Keywords: Risk-Market Imbalances, Safe Assets, Financial Underdevelopment, Sudden Stops, Crises, Global Imbalances, Low Interest Rates, Reach-for-Yield, Recessions, Speculation, Panics, Knightian Uncertainty, Flight-to-Safety, Put-Policies, Safety Traps, Global Spillovers, Aggregate Demand, Macroprudential. Suggested Citation: Caballero, Ricardo J., Risk-Centric Macroeconomics and Safe Asset Shortages in the Global Economy: An Illustration of Mechanisms and Policies (September 18, 2018). Available at SSRN: https://ssrn.com/abstract=3253064 or http://dx.doi.org/10.2139/ssrn.3253064...


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