Case Studies on Disruptions during the Crisis

12 Pages Posted: 5 Mar 2014

Date Written: February 1, 2014

Abstract

The 2007-09 financial crisis saw many funding mechanisms challenged by a drastic reduction in market liquidity, a sharp increase in the cost of transactions, and, in some cases, a drying-up in financing. This article presents case studies of several key financial markets and intermediaries under significant distress at this time. For each case, the author discusses the size and evolution of the funding mechanism, the sources of the disruptions, and the policy responses aimed at mitigating distress and making markets more liquid. The review serves as a reference on the vulnerabilities of funding structures and is useful for those considering the scope and design of reform efforts.

Keywords: wholesale funding, money market mutual funds, commercial paper, repo, dollar swap lines, asset-backed commercial paper

JEL Classification: G21, G01, G18, G19

Suggested Citation

Yorulmazer, Tanju, Case Studies on Disruptions during the Crisis (February 1, 2014). Economic Policy Review, Vol. 20, No. 1, 2014, Available at SSRN: https://ssrn.com/abstract=2403923

Tanju Yorulmazer (Contact Author)

Koc University ( email )

Rumeli Feneri Yolu
Sariyer, Istanbul, 34450
Turkey

HOME PAGE: http://gsssh.ku.edu.tr/en/departments/economics/akademik-kadro/show/tyorulmazer/

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