Money Market Mutual Funds: Runs, Emergency Liquidity Facilities, and Potential Reforms Money Market Mutual Funds: Runs, Emergency Liquidity Facilities, and Potential Reforms

By Kenechukwu E. Anadu and Siobhan Sanders

This note describes past runs on non-government money market mutual funds and official sector actions that were taken to stem the runs. In addition, it highlights other cash management vehicles that may have vulnerabilities similar to those of non-government MMMFs. Finally, it proposes that converting all non-government MMMFs into government MMMFs could substantially reduce the likelihood of future official sector support for MMMFs.