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A key structural vulnerability of open-end mutual funds is the potential liquidity mismatch between assets and liabilities. In this paper we study the management of liquidity transformation by open-end mutual funds through cash holdings and its potential implications for financial stability....
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The world has changed dramatically in recent years and so has the field of economics, but many introductory economics … presents the main macroeconomic and financial patterns observed across the world, the institutions that govern national … they apply in real-world situations. Throughout the book, the post-2007 financial crisis is a continuing focus and …
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Stablecoins and money market funds both seek to provide investors with safe, money-like assets but are vulnerable to runs in times of stress. In this paper, we investigate similarities and differences between the two, comparing investor behavior during the stablecoin runs of 2022 and 2023 to...
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