Press Releases

2013

 
Economic Quarterly

August 8, 2013

Richmond Fed's Economic Quarterly Considers Net Asset Values for Money Market Funds

Richmond, Va.

The instability of money market mutual funds is a subject of active debate. In the latest issue of Economic Quarterly, Richmond Fed economist Huberto M. Ennis explores a new regulatory framework that is likely to be implemented soon in the United States. The design of such a framework should depend on an assessment of which is the main economic function fulfilled by these funds. If money funds are providing maturity transformation, then redemption values that permanently reflect the market value of assets may be hard to compute and may undermine the purpose of the funds. If funds are mainly investment managers, then market-based redemption values can be appropriate and increase the stability of the funds.

You can find the full text of this article and others in the latest issue of Economic Quarterly on our website.

Also in the Fourth Quarter 2012 issue:

  • Debt Default and the Insurance of Labor Income Risk by Kartik B. Athreya, Xuan S. Tam, and Eric R. Young
  • Regulation and the Composition of CEO Pay by Arantxa Jarque and Brian Gaines

The Economic Quarterly is a free publication containing economic analysis pertinent to Federal Reserve monetary and banking policy. For more information, contact the Federal Reserve Bank of Richmond's Research Department—Publications at 800.322.0565 or visit www.richmondfed.org/research/.


The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.

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