I am researching the question, what happens during a crisis situation to the money market. Can it break?
In 2007-08 there is evidence that liquity hoarding from banks became a rather common problem. (See f.ex. Berrospide 2012)
I in a risk statement(which I cannot find anymore) that the ECB does not see the money market as a secure way to fund a bank in a crisis situation and somehow I interprete from this that it only sees itself as the real constant during a financial crisis.
Does the money market hold in a severe crisis situation?
I appreciate your experienced answers!