Authors: Andrew F. Haughwout, Ben Hyman, and Or Shachar
-
-
-
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
-
-
-
The New York Fed provides a wide range of payment services for financial institutions and the U.S. government.
The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
The New York Fed has been working with tri-party repo market participants to make changes to improve the resiliency of the market to financial stress.
-
-
-
We are connecting emerging solutions with funding in three areas—health, household financial stability, and climate—to improve life for underserved communities. Learn more by reading our strategy.
The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality.
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
-
Economic Policy Review
The Municipal Liquidity Facility
Volume 28, Number 1
June 2022
June 2022
JEL classification: G14, G18, H74
At the onset of the COVID-19 pandemic, state and local governments were among the sectors expected to experience the most severe distress. The combination of a sharply deteriorating revenue picture, a pressing need for additional expenditures, delays in the receipt of substantial taxes owed, and an inability to access the financial markets raised serious concerns among many observers about the ability of state and local governments to meet their public service delivery responsibilities. In April 2020, the Federal Reserve announced the establishment of the Municipal Liquidity Facility (MLF) to help municipalities manage the cash flow challenges that the pandemic produced. The MLF ultimately offered three-year loans at penalty rates to a set of eligible municipal issuers that included states, large cities and counties, and a number of revenue bond issuers. Research suggests that the MLF, in spite of lending to only the State of Illinois and the Metropolitan Transportation Authority, contributed to a healing in the municipal securities market as a whole. Effects on real economic outcomes like employment in the sector are harder to attribute to the facility.
Editors’ note: The article PDF was revised to correct a typo in an annotation in Chart 4. (July 13, 2022).
Author Disclosure Statement(s)
Andrew Haughwout
Andrew Haughwout declares that he has no relevant or material financial interests that relate to the research described in this paper.
Ben Hyman
Ben Hyman declares that he has no relevant or material financial interests that relate to the research described in this paper.
Or Shachar
Or Shachar declares that she has no relevant or material financial interests that relate to the research described in this paper.
Andrew Haughwout declares that he has no relevant or material financial interests that relate to the research described in this paper.
Ben Hyman
Ben Hyman declares that he has no relevant or material financial interests that relate to the research described in this paper.
Or Shachar
Or Shachar declares that she has no relevant or material financial interests that relate to the research described in this paper.
By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement. 
