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The Federal Reserve's contingency financing plan for the century date change

Author

Listed:
  • Evangeline Sophia Drossos
  • R. Spence Hilton

Abstract

With the approach of the new millennium last year, many market participants resolved to limit their exposure to Y2K-related risks by cutting back normal trading activities. The Federal Reserve foresaw that the widespread adoption of such a strategy could lead to serious liquidity problems in key financing markets. Consequently, the Fed undertook to create a Standby Financing Facility that would provide securities dealers with a form of backup funding and ease market anxieties about year-end credit conditions.

Suggested Citation

  • Evangeline Sophia Drossos & R. Spence Hilton, 2000. "The Federal Reserve's contingency financing plan for the century date change," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 6(Dec).
    • Handle: RePEc:fip:fednci:y:2000:i:dec:n:v.6no.15
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    Citations

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    Cited by:

    1. Suresh Sundaresan & Zhenyu Wang, 2006. "Y2K options and the liquidity premium in Treasury bond markets," Staff Reports 266, Federal Reserve Bank of New York.
    2. repec:pri:cepsud:129blinder is not listed on IDEAS
    3. Alan S. Blinder, 2006. "Monetary Policy Today: Sixteen Questions and about Twelve Answers," Working Papers 73, Princeton University, Department of Economics, Center for Economic Policy Studies..
    4. Metrick, Andrew, 2022. "Broad-Based Emergency Liquidity Programs," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 4(2), pages 86-178, April.
    5. Alan S. Blinder, 2006. "Monetary Policy Today: Sixteen Questions and about Twelve Answers," Working Papers 73, Princeton University, Department of Economics, Center for Economic Policy Studies..

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