Although there appears to be some slowing down of the economy, there are indications that domestic final demand remains fairly strong. Despite the increase in interest rates over the past year, real growth in household consumption expenditure was unchanged from 2001 at 3,1 per cent although on a quarterly basis there was a decline over the year in durable goods consumption.
This rush of outflows as a share of assets was faster than in the run in 2008, and it appears some features of the money funds may have contributed to the severity of the run.2 The run in March forced MMFs to rapidly reduce their commercial paper holdings, which worsened stress in short-term funding markets.