Arbeitspapier

The topology of the federal funds market

The recent turmoil in global financial markets underscores the importance of the federal funds market as a means of distributing liquidity throughout the financial system and a tool for implementing monetary policy. In this paper, we explore the network topology of the federal funds market. We find that the network is sparse, exhibits the small-world phenomenon, and is disassortative. In addition, reciprocity loans track the federal funds rate, and centrality measures are useful predictors of the interest rate of a loan.

Language
Englisch

Bibliographic citation
Series: Staff Report ; No. 354

Classification
Wirtschaft
Money and Interest Rates: General
Central Banks and Their Policies
Monetary Policy, Central Banking, and the Supply of Money and Credit: Other
General Financial Markets: General (includes Measurement and Data)
Subject
Federal funds
network
topology
interbank
money markets

Event
Geistige Schöpfung
(who)
Bech, Morten L.
Atalay, Enghin
Event
Veröffentlichung
(who)
Federal Reserve Bank of New York
(where)
New York, NY
(when)
2008

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bech, Morten L.
  • Atalay, Enghin
  • Federal Reserve Bank of New York

Time of origin

  • 2008

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