The Latest Fallacy About Money Market Funds
Melanie L. Fein
Fein Law Offices
A number of falsehoods have emerged during the past two years concerning money market funds and their role in the financial system. The latest fallacy claims that MMFs can cut off the supply of funds to the banking system and thereby imperil the ability of banks to provide loans to the economy. This paper examines this fallacy and explains why it is false.
Number of Pages in PDF File: 82
Keywords: money market funds, MMFs, bank, liquidity, funding, financial markets, Basel, regulators, commercial paper, Dodd-Frank Act, Citigroup, credit availabilityworking papers series
Date posted: July 28, 2012
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