When countries in a common currency area show persistently rising ratios of public debt to GDP, how does it affect the credibility of an inflation-targeting central bank?
Answer to relevant QuestionsThe Maastricht Treaty, which established the European Central Bank, states that the governments of the countries in the European Monetary Union must not seek to influence the members of the central bank’s decision-making ...Financial stability is a goal of most central banks. Based on a graph showing the evolution of the European Central Bank’s assets (FRED code: ECBASSETS), how important was this goal for the ECB (a) Before 2007, (b) During ...Why did the sovereign debt problem of Greece – which accounts for less than 2 percent of euro-area GDP–, threaten the banking system throughout the euro area?Go to the Federal Reserve Board's Web site and locate the FOMC’s most recent statement. What did the committee members say at their last meeting regarding the Federal funds target and the two goals of price stability and ...The FOMC statement of December 12, 2012, indicated that the target range for the federal funds rate would continue at least until the rate of unemployment falls below 6½ percent or the projected rate of inflation one to two ...
Post your question