Money Market Funds and Unconventional Monetary Policy
Abstract
The aim of this paper is to asses if the unconventional monetary policy, commonly known as zero lower bound, affect a significant player of the financial system, money market funds (MMFs) along several dimension. The... [ view full abstract ]
The aim of this paper is to asses if the unconventional monetary policy, commonly known as zero lower bound, affect a significant player of the financial system, money market funds (MMFs) along several dimension. The focus is on Ireland, the country in Europe where is based the biggest MMFs industry. We are able to demonstrate empirically that monetary policy affects MMFs performance, that exists a relation between fund flows and fund returns and that the current negative-interest-rate framework affects
not only the money fund industry as a whole but also the individual fund strategy.
Authors
-
Jacopo Sorbo
(Central Bank of Ireland)
-
GIOVANNA BUA
(Central Bank of Ireland)
-
Peter Dunne
(Central Bank of Ireland)
Topic Area
Financial Economics
Session
3C » Financial Economics 1 (13:30 - Thursday, 10th May, GE.01)
Paper
MMFs_ZLB.PDF