Bordo, Michael D.; Duca, John V. - National Bureau of Economic Research - 2021
For over two centuries, the municipal bond market has been a source of systemic risk, which returned early in the Covid … market, spreads of muni over Treasury yields rose in line with the unemployment rate and appeared headed to levels not seen … of the MLF could undermine the efficiency of the bond market if the facility lasts too long and could induce moral hazard …