The central bank of a country facing economic and financial market difficulties asks for your advice. The

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The central bank of a country facing economic and financial market difficulties asks for your advice. The bank hit the zero bound with its policy interest rate but it wasn’t enough to stabilize the economy. Drawing on the actions taken by the Federal Reserve during the financial crisis of 2007-2009, what might you advise this central bank to do?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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