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Worse than 1998? email this discussion to a friend?

Econbrowser (2) 
1 year ago

From IDEAGlobal, FX Alert, August 21:MONEY MARKET DISLOCATION WORSE THAN IN 1998The spread between the 3 months cash rate and the policy rate in the US, Eurozone and UK has jumped during this period of financial turbulence more than it did on the occasion of the Russian default/LTCM debacle in 1998. A similar pattern can be observed also for the spread between O/N rate and the policy rate. This is due to the dislocation observed in the money markets around the world originated by the...

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