US Dollar Money Market Funds and Non-US Banks
17 Pages Posted: 27 Jul 2012
Date Written: March 2, 2009
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.
JEL Classification: E58, F34, G28, G29
Suggested Citation: Suggested Citation