The market turmoil in March 2020 highlighted key vulnerabilities in the EU money market fund (MMF) sector. This paper assesses the effectiveness of the EU's regulatory framework from a financial stability perspective, based on a panel analysis of EU MMFs at a daily frequency. First, we find that...

This paper intends to show that the origin and development of the current crisis is entirely consistent with Hyman Minsky analysis. The substantial inadequacy of the regulatory framework in controlling the massive innovation processes involving the financial sector in the last twenty years is...