The Federal Reserve Municipal Liquidity Facility (MLF): Where the municipal securities market and fed finally meet

IF 0.9 Q4 PUBLIC ADMINISTRATION

Public Budgeting and Finance Pub Date : 2021-08-17 DOI:10.1111/pbaf.12303

Craig L. Johnson, Tima T. Moldogaziev, M. Luby, Ruth Winecoff

引用次数: 0

Abstract

The CARES Act authorized the Municipal Liquidity Facility (MLF) with an explicit purpose of aiding state and local governments with their liquidity needs during the COVID-19 pandemic. Unlike other federal liquidity facilities authorized by the Act that offered short-term financing to certain dealers and institutional investors in municipal securities, the MLF offered direct access to liquidity to eligible state and local governments. In this article we describe the MLF, including its legal arrangements, structural characteristics, and public policy features. We then empirically evaluate the pricing, credit rating, and issuer eligibility requirements of the MLF, in the context of other federal interventions, using difference-in-differences and interrupted time series analysis techniques. Finally, we propose suggestions for the evolution of the MLF and the Federal Reserve's liquidity provision role in response to continued exposure to and recovery from the COVID-19 pandemic. © 2021 Public Financial Publications LLC

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美联储市政流动性基金（MLF）：市政证券市场和美联储最终会面的地方

CARES法案授权设立市流动性基金（MLF），其明确目的是在新冠肺炎大流行期间帮助州和地方政府满足其流动性需求。与该法案授权的其他向市政证券的某些交易商和机构投资者提供短期融资的联邦流动性便利不同，MLF向符合条件的州和地方政府提供了直接获得流动性的途径。在本文中，我们描述了MLF，包括其法律安排、结构特征和公共政策特征。然后，我们在其他联邦干预的背景下，使用差异和中断时间序列分析技术，实证评估MLF的定价、信用评级和发行人资格要求。最后，我们为MLF的演变和美联储在应对新冠肺炎疫情持续暴露和复苏中的流动性提供作用提出了建议。©2021 Public Financial Publications LLC

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Public Budgeting and Finance PUBLIC ADMINISTRATION-

CiteScore

2.10

自引率

14.30%

发文量

期刊介绍： Public Budgeting & Finance serves as a forum for the communication of research and experiences on all facets of government finance and provides meaningful exchange between research from universities, private and nonprofit research institutes, practitioners in public financial markets, government agencies, and the experience of those who practice government budgeting and finance. Researchers, practitioners, and teachers of applied government finance turn to Public Budgeting & Finance to find understandable, reliable, and thoughtful analysis of issues important in the field. The content of the journal spans the spectrum of budget process and policy and financial management, is never limited to one level of government or even to one country, and always even-handedly crosses disciplines and approaches in applied government finance.