Gabriele La Spada is a financial research advisor in Money and Payments Studies. His main research interests are in financial economics, in particular the effect of monetary policy on financial intermediaries as well as the competition in the asset management industry. In addition, he is interested in market microstructure and financial econometrics. He received his Ph.D. in Economics from Princeton University in May 2015.| www.newyorkfed.org
Thomas Eisenbach is a financial research advisor in Money and Payments Studies. His main research interests are in financial economics with links to macroeconomics, in particular the role that frictions play for financial institutions, financial markets, and the economy more broadly. He has worked on issues of financial stability such as rollover risk and fire sales, as well as on bank supervision and monetary policy transmission. His articles have been published in leading academic journals,...| www.newyorkfed.org
Marco Cipriani is the head of Money and Payments Studies. His research interests include Financial Markets Microstructure, Social Learning in Financial Markets, and Experimental Finance. Before joining the bank, Marco was a senior economist at the International Monetary Fund and an Associate Professor of Economics at George Washington University. Marco holds a Ph.D. from New York University.| www.newyorkfed.org
Fields of interest| www.newyorkfed.org
Stablecoins are digital assets whose value is pegged to that of fiat currencies, usually the U.S. dollar, with a typical exchange rate of one dollar per unit. Their market capitalization has grown exponentially over the last couple of years, from $5 billion in 2019 to around $180 billion in 2022. Notwithstanding their name, however, stablecoins can be very unstable: between May 1 and May 16, 2022, there was a run on stablecoins, with their circulation decreasing by 15.58 billion and their mar...| Liberty Street Economics
In March 2020, U.S. prime money market funds (MMFs) suffered heavy outflows following the liquidity shock triggered by the COVID-19 crisis. In a previous post, we characterized the run on the prime MMF industry as a whole and the role of the liquidity facility established by the Federal Reserve (the Money Market Mutual Fund Liquidity Facility) in stemming the run. In this post, based on a recent Staff Report, we contrast the behaviors of retail and institutional investors during the run and e...| Liberty Street Economics