IDEAS home Printed from https://ideas.repec.org/a/fip/b00001/97426.html
   My bibliography  Save this article

Money Market Mutual Funds: Runs, Emergency Liquidity Facilities, and Potential Reforms

Author

Listed:
  • Kenechukwu E. Anadu
  • Siobhan Sanders

Abstract

This note describes past runs on non-government money market mutual funds and official sector actions that were taken to stem the runs. In addition, it highlights other cash management vehicles that may have vulnerabilities similar to those of non-government MMMFs. Finally, it proposes that converting all non-government MMMFs into government MMMFs could substantially reduce the likelihood of future official sector support for MMMFs.

Suggested Citation

  • Kenechukwu E. Anadu & Siobhan Sanders, 2021. "Money Market Mutual Funds: Runs, Emergency Liquidity Facilities, and Potential Reforms," Supervisory Research and Analysis Notes, Federal Reserve Bank of Boston, issue 03, pages 1-12, May.
    • Handle: RePEc:fip:b00001:97426
    as

    Download full text from publisher

    File URL: https://www.bostonfed.org/publications/supervisory-research-and-analysis-notes/2021/money-market-mutual-funds-runs-emergency-liquidity-facilities-and-potential-reforms.aspx
    File Function: Summary
    Download Restriction: no
    File URL: https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2021/sra-note-2103.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marco Cipriani & Antoine Martin & Patrick E. McCabe & Bruno Parigi, 2014. "Gates, Fees, and Preemptive Runs," Finance and Economics Discussion Series 2014-30, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco Cipriani & Gabriele La Spada, 2020. "Sophisticated and Unsophisticated Runs," Staff Reports 956, Federal Reserve Bank of New York.
    2. Dunhong Jin & Marcin Kacperczyk & Bige Kahraman & Felix Suntheim, 2022. "Swing Pricing and Fragility in Open-End Mutual Funds," The Review of Financial Studies, Society for Financial Studies, vol. 35(1), pages 1-50.
    3. Josh Frost & Lorie Logan & Antoine Martin & Patrick E. McCabe & Fabio M. Natalucci & Julie Remache, 2015. "Overnight RRP operations as a monetary policy tool: some design considerations," Staff Reports 712, Federal Reserve Bank of New York.
    4. Roy Havemann, 2018. "Can creditor bail-in trigger contagion? The experience of an emerging market," Working Papers 755, Economic Research Southern Africa.
    5. Schilling, Linda, 2023. "Smooth versus Harsh Regulatory Interventions and Policy Equivalence," MPRA Paper 116612, University Library of Munich, Germany.
    6. Nathan Foley-Fisher & Borghan Narajabad & Stéphane Verani, 2020. "Self-Fulfilling Runs: Evidence from the US Life Insurance Industry," Journal of Political Economy, University of Chicago Press, vol. 128(9), pages 3520-3569.
    7. Russell Cooper & Hubert Kempf, 2016. "Deposit insurance and bank liquidation without commitment: Can we sleep well?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(2), pages 365-392, February.
    8. Jeffrey N. Gordon, 2014. "The Empty Call for Benefit-Cost Analysis in Financial Regulation," The Journal of Legal Studies, University of Chicago Press, vol. 43(S2), pages 351-378.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:b00001:97426. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Spozio (email available below). General contact details of provider: https://edirc.repec.org/data/frbbous.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.