Guillermo Ordoñez, Facundo Piguillem, 19 October 2018

As life expectancy has increased, so has the need for retirement savings. New financial instruments have been important in meeting the increasing demand for safe assets. This column shows that shadow banking has played a crucial role in meeting the higher demand for insurance by lowering the financial sector’s liquidity costs. Despite its role in the Great Recession, shadow banking has done more good than harm.

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