Our speaker will be Karol Paludkiewicz (Deutsche Bundesbank).

He will give a talk on "You Can't Always Get What You Want (Where You Want It): Cross-Border Effects of the US Money Market Fund Reform" (with Daniel Fricke & Stefan Greppmair).

Abstract: This paper shows that the 2014 US money market fund (MMF) reform was associated with stabilizing cross-border effects for Euro Area MMFs. The reform forced US-based institutional prime MMFs to switch from constant to variable net asset value, while MMFs in other jurisdictions were not directly affected. We document that US-focused institutional prime MMFs domiciled in the Euro Area received substantial inflows from foreign investors around the implementation of the reform. Consistent with an easing of competitive pressure, affected MMFs reduce their risk-taking.

The talk will take place on Wednesday, October 20, 2021 via Zoom at 1:00-2:00 pm.

Zoom: You can join the seminar using this link.