Browsing by Author "Paavola, Aleksi"

Sort by: Order: Results:

Now showing items 1-4 of 4
  • Järvenpää, Maija; Paavola, Aleksi (2021)
    Bank of Finland Research Discussion Papers 2/2021
    An asset is money-like if investors have no incentives to acquire costly private information on the underlying collateral. However, privately provided money-like assets—like prime money market fund (MMF) shares—are prone to runs if investors suddenly start to question the value of the collateral. Therefore, for risky assets, lack of money-likeness is a necessary condition for lack of run incentives. But is it a sufficient one? This paper studies the effect of the U.S. money market fund reform of 2014–2016 on investor monitoring, money-likeness and stability of institutional prime MMFs. Using the number of distinct IP addresses accessing MMFs’ regulatory reports as a proxy for investor monitoring, we find that the reform increased monitoring and thus decreased money-likeness of institutional prime funds. However, we also show that after the reform, institutional prime funds that are more likely to impose the newly introduced redemption restrictions are more monitored, suggesting that investors may monitor in order to avoid being hit by the restrictions. Overall, our results indicate that increased monitoring, or decreased money-likeness, has not made institutional prime MMFs run-free, and it may have actually created a new source of fragility for MMFs.
  • Paavola, Aleksi (2022)
    Euro & talous. Blogi
    Suomen Pankin tase eli varat ja velat tiettynä ajanhetkenä on kasvanut suurimmilleen koskaan. Helmikuussa varat ja velat olivat noin 244 mrd. euroa eli suurin piirtein Suomen bruttokansantuotteen verran. Vain kaksi kuukautta aiemmin taseen loppusumma oli 176 mrd. euroa, joten viimeaikainen kasvu on ollut erityisen nopea.
  • Paavola, Aleksi (2016)
    Euro & talous. Blogi
    Englannin keskuspankki (Bank of England, BoE) reagoi Brexit-äänestystuloksen aiheuttamaan epävarmuuteen ilmoittamalla 4.8.2016 laajoista rahapoliittisista toimista. Yksi näistä toimenpiteistä on Term Funding Scheme -ohjelma (TFS).
  • Paavola, Aleksi (2016)
    Bank of Finland Bulletin. Analysis
    Following the financial crisis and the subsequent decrease in economic growth, major central banks have cut interest rates close to zero and introduced non-standard policy measures, such as outright asset purchases, to stimulate the economy. What are the theoretical foundations of these policies and what do we know about their effects on financial asset prices?