In the end, lending is an act of trust and there is no alternative but to restore full confidence in the soundness of bank and government finance. Secured and unsecured money markets: the US and the euro area experience Money markets are vital funding markets for financial institutions.
Spill overs to emerging markets and musical crises If UMP enhances financial risk taking in the originating country without enhancing domestic investment or consumption, the exchange rate impact of UMP may simply shift demand away from countries not engaging in UMP, without creating much compensating domestic demand for their goods.