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The Federal Funds Market Since The Financial Crisis
Monday, April 10, 2017 4:41
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from the Cleveland Fed
– this post authored by Ben R. Craig and Sara Millington
Before the financial crisis, the federal funds market was a market in which domestic commercial banks with excess reserves would lend funds overnight to other commercial banks with temporary shortfalls in liquidity. What has happened to this market since the financial crisis? Though the banking system has been awash in reserves and the federal funds rate has been near zero, the market has continued to operate, but it has changed.
Source: http://econintersect.com/pages/contributors/contributor.php?post=201704100558
