Investors pay a premium to own safe and liquid assets. In this talk, Visiting Scholar Arvind Krishnamurthy reviewed empirical evidence for this proposition, documenting the size of premia across different assets as well as the time-series behavior of these premia, in particular around financial crises. He also discussed the supply of liquid and safe assets and drew implications for economic theories in banking, monetary economics, and international finance.
This talk was planned especially by and for graduate students in economics and finance.
Location:
Chicago Booth
Charles M. Harper Center, Room 3B
5807 South Woodlawn Avenue, Chicago