HKS Affiliated Authors
James W. Harpel Professor of Capital Formation and Growth
Excerpt
Excerpt
Why Financial Markets Underestimate Risk. Jeffrey Frankel, September 25, 2017, Opinion, "Today's economy is in a “risk-on” period, when investors exchange safe-haven assets like US Treasury Bills for riskier ones, from real estate to carry-trade currencies. But when such behavior assumes that economic conditions are more stable than they are, as seems to be the case today, trouble inevitably follows." Link