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Money Market Integration / Leonardo Bartolini, R. Spence Hilton, Alessandro Prati.

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Format:
Book
Government document
Author/Creator:
Bartolini, Leonardo.
Contributor:
Hilton, R. Spence.
Prati Musetti, Alessandro.
International Monetary Fund. Research Department.
Series:
IMF Working Papers; Working Paper ; No. 2006/207
IMF Working Papers
Language:
English
Subjects (All):
Euro-dollar market--Econometric models.
Euro-dollar market.
Federal funds market (United States)--Econometric models.
Federal funds market (United States).
Foreign exchange rates--Econometric models.
Foreign exchange rates.
Money market--Econometric models.
Money market.
Physical Description:
1 online resource (28 p.)
Edition:
1st ed.
Place of Publication:
Washington, D.C. : International Monetary Fund, 2006.
Language Note:
English
Summary:
We use transaction-level data and detailed modeling of the high-frequency behavior of federal funds and Eurodollar yield spreads to provide evidence of strong integration between the federal funds and Eurodollar markets, the two core components of the dollar money market. Our results contrast with previous evidence of segmentation of these two markets, showing them to be well integrated even at high intra-day frequency. We document several patterns in the behavior of federal funds and Eurodollar spreads, including liquidity effects from trading volume to yield spreads volatility. Our analysis supports the view that targeting federal funds rates alone is sufficient to stabilize rates in the, much larger, dollar money market as a whole.
Contents:
""Contents""; ""I. INTRODUCTION""; ""II. THE FEDERAL FUNDS AND THE EURODOLLAR MARKETS""; ""III. EMPIRICAL STRATEGY""; ""IV. DATA""; ""V. PRELIMINARY DATA ANALYSIS""; ""VI. ESTIMATION AND RESULTS""; ""A. Step 1: Daily NY Federal Funds vs. London Eurodollars""; ""B. Step 2: Daily NY Federal Funds vs. NY Eurodollars""; ""C. Step 3: Intra-Day NY Federal Funds vs. NY Eurodollars""; ""VII. CONCLUSIONS""; ""REFERENCES""
Notes:
"September 2006."
Caption title.
Includes bibliographical references.
Description based on print version record.
ISBN:
9786613827180
9781462384105
1462384102
9781451992380
1451992386
9781283514736
1283514737
9781451994049
1451994044
OCLC:
694141209

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