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

Author

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  • 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
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    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)

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