The financial crisis, in particular the collapse of Lehman Brothers, has revealed that money market funds are more risky than had previously been believed. We discuss the importance of money market funds for financial stability and whether situations similar to those in the US and Icelandic...

This paper analyses the extent to which the Swedish money market risk premium has been affected by the current financial turmoil. We also examine the impact of shocks transmitted from the US and European markets in more detail. Our results indicate that the Swedish market has been significantly...