The money markets are at the heart of the recent financial crisis and are the subject of substantial news coverage. However, much of what was reported showed a lack of understanding of money markets in general and, a specific lack of understanding as to why the financial crisis unfolded as it did in these markets. The purpose of this paper is to discuss what actually happened and why. Specifically, we discuss: (1) the economic role of the money markets, (2) the institutional features of the money markets central to the financial crisis and, (3) what actually happened in the various money markets.
Griffiths, Mark D.; Kotomin, Vladimir; and Winters, Drew B., "A Crisis of Confidence: Understanding Money Markets during the Financial Crisis" (2012). Faculty Publications - Finance, Insurance, and Law. 10.