Finance and Economics Discussion Series (FEDS)by Lucia Gurrieri, Chase Ross, Ben Schmiedt, Alexandros P. Vardoulakis, and Vladimir Yankov We examine whether access to the Federal Reserve’s Overnight Reverse Repo Facility (ON RRP) affects money market fund flows during flight-to-safety episodes. We find that funds with ON RRP access serving sophisticated investors experience about a 1[…]

SUERF Policy Briefby Christoph Basten & Ragnar Juelsrud Changes in monetary policy rates are passed through to deposit rates incompletely, reducing the attractiveness to bank clients of deposits relative to assets with higher pass-through after policy rate hikes. This reduces deposit growth and, with deposits as primary refinancing, loan growth following monetary tightening, which supports[…]

SUERF Policy Briefby Federica Ciocchetta, Raffaele Gallo, Silvia Magri & Massimo Molinari This policy brief analyzes whether the deposits of “high digital” banks, i.e. those whose customers mainly use online money transfers, are more sensitive to changes in interest rates following the monetary tightening in 2022. We show that there are no significant differences between[…]

CEPR Press Book edited by Dirk Niepelt Digital innovation is transforming money and redrawing the global financial landscape. From instant payments to stablecoins, CBDC, and tokenised assets, new technologies are redefining how value is created, stored, and exchanged – reshaping the roles of banks, central banks, and markets. Yet this transformation is far from uniform:[…]