Birth of safe asset out of spirit of war economy
WWII -> surge in US gov debt.
Banks buy debt -> capital adequacy rules introduced in 1930s become binding.
What gives?
Yup! Treasuries = safe assets -> exempt from equity-asset ratio.
@DanielaGabor
som.yale.edu/blog/war-finan… https://t.co/JzhloHnmnH
RT @BJMbraun: How to be an effective political economist: Laser focus on the neuralgic points of the state-market nexus, follow
May 18, 2023
RT @BJMbraun: How to be an effective political economist: Laser focus on the neuralgic points of the state-market nexus, follow the money,…