Money Market Fund Reform: Dealing with the Fundamental Problem

The Economic Implications of Money Market Fund Capital Bu

This paper develops an affine term structure for the valuation of money market funds. This valuation framework is then used to consider the economic implications of funds that are supported by a capital buffer. The main findings are twofold. First, relatively small capital buffers are capable of absorbing daily fluctuations between a fund’s shadow price and its amortized cost. For example, a fu...

By Force of Flow: Investor Behavior and Money Market Fund Risk Allocations During the Eurozone Crisis∗

This paper studies fund flows and risk allocation decisions among prime money market funds (MMFs) during the 2011–2012 eurozone crisis. We exploit much more granular measures of fund credit risk and investor sophistication than previously employed in the literature. Empirically, we find that funds with greater credit risks experienced larger outflows during the eurozone crisis. This effect was ...

Finding the money for healthcare reform.

Dealing with the Problem of Cybercrime

Lack of a universally accepted and comprehensive taxonomy of cybercrime seriously impedes international efforts to accurately identify, report and monitor cybercrime trends. There is, not surprisingly, a corresponding disconnect internationally on the cybercrime legislation front, a much more serious problem and one which the International Telecommunication Union (ITU) says requires ‘the urgent...

Dealing with the problem of employee turnover.

Employee turnover is expensive, costing American industry billions of dollars every year. It strikes operations of all sizes and is not any less devastating in the public sector than it is in the private sector. These financial costs can be classified as both direct (additional fees for recruitment, steeper assessments for unemployment taxes, and the rising expenses of payroll administration fo...