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US dollar money market funds and non-US banks

Author

Listed:
  • Naohiko Baba
  • Robert N McCauley
  • Srichander Ramaswamy

Abstract

The Lehman Brothers failure stressed global interbank and foreign exchange markets because it led to a run on money market funds, the largest suppliers of dollar funding to non-US banks. Policy stopped the run and replaced private with public funding.

Suggested Citation

  • Naohiko Baba & Robert N McCauley & Srichander Ramaswamy, 2009. "US dollar money market funds and non-US banks," BIS Quarterly Review, Bank for International Settlements, March.
    • Handle: RePEc:bis:bisqtr:0903g
    as

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    References listed on IDEAS

    as
    1. Eric Rosengren, 2008. "The impact of financial institutions and financial markets on the real economy: implications of a 'liquidity lock'," Speech 17, Federal Reserve Bank of Boston.
    2. Robert N. McCauley & Rama Seth, 1992. "Foreign bank credit to U.S. corporations: the implications of offshore loans," Quarterly Review, Federal Reserve Bank of New York, vol. 17(Spr), pages 52-65.
    3. Lauren A. Hargraves & Robert N. McCauley, 1987. "Eurocommercial paper and U.S. commercial paper: converging money markets?," Quarterly Review, Federal Reserve Bank of New York, vol. 12(Aut), pages 24-35.
    4. Naohiko Baba & Frank Packer & Teppei Nagano, 2008. "The spillover of money market turbulence to FX swap and cross-currency swap markets," BIS Quarterly Review, Bank for International Settlements, March.
    5. Patrick McGuire & Goetz von Peter, 2009. "The US dollar shortage in global banking," BIS Quarterly Review, Bank for International Settlements, March.
    6. Eric Rosengren, 2008. "The economy and markets," Speech 18, Federal Reserve Bank of Boston.
    7. William Dudley, 2008. "May you live in interesting times: the sequel," Proceedings 1071, Federal Reserve Bank of Chicago.
    8. Baba, Naohiko & Packer, Frank, 2009. "Interpreting deviations from covered interest parity during the financial market turmoil of 2007-08," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 1953-1962, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

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