During the 2007-2009 financial crisis, there was turmoil in the money markets, including money market mutual funds. The Fed and/or Treasury were active in propping up the system to prevent a bank run. During this current coronavirus pandemic, there is concern about the health of the money markets and money market mutual funds.
Compare and contrast the stress in the money markets during the 2007-2009 financial crisis and the current coronavirus pandemic. For example, you can look at the volume of new issuances, the spread between T-bills and other money market instruments, etc. In addition, discuss the steps that the Fed and/or Treasury took in 2007-2009, and your opinion whether they will follow similar steps now (and justify your opinion).
This assignment is intentionally open-ended. You can use news articles, blog posts, reports written by economists at various Fed branches, etc. Be sure to cite all your work. If you rely on blog posts, try to find a more reputable source to justify the statistics (most good bloggers will link to other reputable sources to cite their statistics).
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