Short-Term Funding Stresses and Asset Prices: Lessons from U.S. History
Abstract: Recent stress episodes in U.S. short-term dollar funding markets have brought renewed attention to the functioning of these markets and how they interact with capital markets more generally. The history of U.S. money markets and stock and bond markets before the founding of the Federal Reserve offer a unique perspective on how the structure of money markets can contribute to broader asset price fluctuations.
Part of Series: FEDS Notes
Publication Date: 2020-11-09