Go to the ECB's web site and locate the most recent introductory statement made by the president of the ECB at the press conference following a Governing Council meeting. What was the Governing Council’s policy decision? How was it justified? Is there any reference to financial stability measures?
Answer to relevant QuestionsDo you think the FOMC has an easier or a harder time agreeing on monetary policy than the Governing Council of the ECB? Why? If you were asked to design a new central bank, what two institutional design features of (a) the Federal Reserve System and (b) the ECB would you adopt? Explain your choices. How large are the public debt burdens of key euro-area economies? Are they rising or falling? Plot without recession bars the debt-to-GDP ratios of Germany (FRED code: GGGDTADEA188N), Italy (FRED code: GGGDTAITA188N) and the ...When you withdraw cash from your bank’s ATM, what happens to the size of the Fed’s balance sheet? Is there any reason for the Fed to react to your action?Consider an open market purchase by the Fed of $3 billion of Treasury bonds. What is the impact of the purchase on the bank from which the Fed bought the securities? Compute the impact on M1 assuming that:(1) The required ...
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