news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Source: Global Times

Our special correspondent Zhen Xiang

An academic paper presented during the Jackson Hole Economic Policy Symposium sparked controversy in the U.S. public opinion. Three scholars from New York University, Stanford University and London Business School submitted a paper on U.S. debt to the conference. After reviewing the U.S. debt market trends during and after the pandemic and the behavior of U.S. debt investors during the same period, they concluded that in the minds of investors, the security of U.S. debt is no different from that of bonds issued by other developed countries such as Germany, Britain and France, and even no different from bonds issued by some large companies.

The article believes that after the outbreak of the COVID-19 pandemic, investors viewed U.S. Treasuries as a high-risk debt investment, and that U.S. Treasuries did not show any special safety advantages. The article calls on policymakers, including central banks, to recognize this change and make wise judgments on whether the bond market is operating normally based on this new understanding.

Reuters analyzed on the 24th that the views in this paper question the so-called safe haven status of U.S. Treasuries, and also impact the "privileged status" that U.S. Treasuries have long enjoyed in the market.