Money Market Mutual Funds: Runs, Emergency Liquidity Facilities, and Potential Reforms
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.
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Provider: Federal Reserve Bank of Boston
Part of Series: Supervisory Research and Analysis Notes
Publication Date: 2021-05-21