Do digital payment technologies generate liquidity premia like cash and Treasury? We provide an estimate in the context of the world's largest digital payment platform, Alipay. Our empirical strategy exploits the variation in the timing of the introduction of money market funds that users on...

The 2008 Financial Crisis dramatically highlighted the systemic vulnerabilities of the multi-trillion dollar Money Market Mutual Fund (MMF) industry, which developed over the last 40 years as a vital part of the U.S. financial system. Yet, more than 5 years on, the problem of what to do with...

This paper presents a general equilibrium, monetary model of bank runs to study monetary injections during financial crises. When the probability of runs is positive, depositors increase money demand and reduce deposits; at the economy-wide level, the velocity of money drops and deflation...