IMF: Low Interest Rates Raise Risk of Money-Market Mutual Fund Run

"Money-market mutual funds could face widespread investor panic if debt markets suddenly sour, the International Monetary Fund warned Thursday.

That’s one of several threats to financial stability long-term monetary easing may be creating, the IMF said in a new study.

The IMF has been a major supporter of the Federal Reserve, the Bank of England and the European Central Bank cutting interest rates to near zero and using unconventional monetary-policy tools to repair the global economy.

But in a chapter of its latest Global Financial Stability Report, the fund explored how flooding the world with cheap money could be creating new financial crises ahead..."

at http://blogs.wsj.com/economics/2013/04/11/imf-low-interest-rates-raise-risk-of-money-market-mutual-fund-run/?mod=WSJBlog