In my introductory remarks today, I would like to explore some of the lessons for policy-makers around the world that can be drawn from the extraordinary events of the past three years. I will first elaborate on why we need a set of rules, institutions, informal groupings and cooperation mechanisms that we call “global governance”.
This means that money market funds are better placed to meet any future redemption pressures. But it also implies that money market funds have increased their investment in short-term funding to the banking system and the real economy and reduced their exposure in long-term funding.