The money market is traditionally defined as the market for financial
assets that have original maturities of one year or less. In essence, it is
the market for short-term debt instruments. Financial assets traded in
this market include such instruments as U.S. Treasury bills, commercial
paper, some medium-term notes, bankers acceptances, federal agency
discount paper, most certificates of deposit, repurchase agreements,
floating-rate agreements, and federal funds.
Banks and other depository institutions can also borrow on a short-term basis at the Federal Reserve
discount window and pay a rate of interest set by the Federal Reserve called the discount rate. A bank's
decision to borrow at the discount window depends on the relation of the discount rate to the federal funds
rate, as well as on the administrative arrangements surrounding the use of the window.
Banks also borrow funds in the money market for longer periods by issuing large negotiable certificates...
This event is most important for the Social Network of Latin America and
the Caribbean. The network has allowed La Red Social to cooperate among
various countries in the struggle against poverty. It recently also completed
an important study of the potentials and the limitations of social funds.
Social funds, created as instruments of the social policy pursued by each
country, were designed to mobilize resources rapidly for the financing of
social action programs.
The need to train those who will be responsible for the O&M is an
important institutional issue. Sometimes those responsible may be
in the community, sometimes they may be a private contractor, or
sometimes they may be in the ministry. User training is needed, par-
ticularly in water supply and sanitation. Sanitation education has
not always been provided and is very important.
If the operator is going to be the sectoral agency, sometimes basic
budgetary reforms need to be addressed.
For our interest rate change variable, we use changes in the U.S. 3-month
commercial paper rate. A short-term commercial paper rate is a reasonable proxy for the
risk-free rate (e.g., Fama and French 2001), and the risk-free rate is a component of the
discount rates of both stocks and bonds. Unfortunately, daily data for the commercial
paper rate are available only after 1970, with weekly increments before that. This data
limitation prompts us to present two sets of results. Panel A of Table 4 presents the first
set of results for the period 1915-1970, where the...