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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. 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.
    2. Eric Rosengren, 2008. "The economy and markets," Speech 18, Federal Reserve Bank of Boston.
    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. Patrick McGuire & Goetz von Peter, 2009. "The US dollar shortage in global banking," BIS Quarterly Review, Bank for International Settlements, March.
    5. William Dudley, 2008. "May you live in interesting times: the sequel," Proceedings 1071, Federal Reserve Bank of Chicago.
    6. 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.
    7. 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.
    8. 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.
    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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