Neil, I just discovered your page here, I'm having a blast going through all your previous posts. Right, so I started to read your paper with Mehrling and Grad (The evolution of last-resort...), but I got stuck in figure 1 there. (USD overnight rate spreads x fed funds): How come the treasury repo rate spiked below the fed funds? Can you expand a little bit on that? Thanks
The 2008 crisis, part 1
Neil, I just discovered your page here, I'm having a blast going through all your previous posts. Right, so I started to read your paper with Mehrling and Grad (The evolution of last-resort...), but I got stuck in figure 1 there. (USD overnight rate spreads x fed funds): How come the treasury repo rate spiked below the fed funds? Can you expand a little bit on that? Thanks