ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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POLYCHEM-Customs Duty Anomalies

debtor need not trigger a decline in the value of all commercial paper Rather, MMFs have been as stable as bank deposits without the prop of government- financed insurance Gorton and Pennacchi observe that if MMFs can do the job of deposits, financial companies can take over from banks as lenders. Such firms are inherently less prone to runs than banks. They are funded by investors who, unlike depositors and holders of MMFs, accept that the value of their securities will fluctuate. Though their assets are illiquid, improvements in financial technology enable investors to monitor the creditworthiness of non-bank lenders.

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