Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130658
Authors: 
Fisher, Jonas D. M.
Year of Publication: 
2014
Series/Report no.: 
Working Paper, Federal Reserve Bank of Chicago 2014-08
Abstract: 
This article shows that the "risk premium" shock in Smets and Wouters (2007) can be interpreted as a structural shock to the demand for safe and liquid assets such as short-term US Treasury securities. Several implications of this interpretation are discussed.
Subjects: 
Smets-Wouters model
safe and liquid assets
money demand
risk premium shock
New Keynesian model
DSGE
flight-to-quality
liquidity preference
JEL: 
E00
E1
E3
E4
E5
G1
Document Type: 
Working Paper

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