In June 2022, the Federal Reserve started reducing the size of its balance sheet, which had expanded to just under $9 trillion in response to the COVID-19 pandemic. However, whereas banks' reserves at the Federal Reserve have decreased, the investment of money market funds (MMFs) at the Federal...

This paper assesses how the financial system influences the strength of the liquidity effect in a calibrated limited participation model of the monetary transmission mechanism. The model suggests that bankbased systems should be characterized by smaller liquidity effects since monetary...

This survey reviews the literature on the political economy of financial structure, broadly defined to include the size of capital markets and banking systems as well as the distribution of access to external finance across firms.The theoretical literature on the institutional basis for...

The liberalization of capital flows is considered an important prerequisite for triggering the financial crisis and is determined by many observers as the most likely cause of the crashes are caused by the emerging markets over the last decade. Empirical data show claim that the liberalization...

The liberalization of capital flows is considered an important prerequisite for triggering the financial crisis and is determined by many observers as the most likely cause of the crashes are caused by the emerging markets over the last decade. Empirical data show claim that the liberalization...