in 2008, western central banks have since applied a series of unconventional monetary policies besides normal ones. One of the characteristics of the unconventional policies is the intended near-to-zero interest rates, so those policies are also named Zero Interest Rate Policies (ZIRP). ZIRP are designed to help the financial market escape from the “liquidity trap”, a situation in which normal expansionary monetary policies fail to decrease interest rates below zero and thus become ineffective. Without
Opinion Essay on the Use of Monetary Policy by the Feds Introduction Congress delegated the responsibility of monetary policy to the central bank of the nation and the Federal Reserve. Nonetheless, it retained the oversight responsibility of affirming that the Fed adheres to its enacted responsibility of stable prices, functional employment, as well as average future interest rates. In order to meet its mandate on stabilizing prices, the Fed has developed a long-run target of about 2% inflation.
fluctuations in exchange rates and how that risk relates to our organization; Coca-Cola Enterprises Inc. (CCE). Serving customers for the last 128 years, our products are now available in more than 200 countries around the world. As our global presence continues to grow, so too does our exposure to fluctuations in currencies other than our base currency, the US dollar. Worldwide, we own assets and owe liabilities, earn revenues and pay expenses in 71 foreign currencies . As such, it is now more important
Preparing exit strategies now, not only for fiscal stimulus, but also for government support for the financial sector and hard-hit industries, will enhance the effectiveness of these measures in the short term, as this depends upon clarity regarding the pace with which such measures will be withdrawn. Since financial markets, businesses and consumers are forward-looking, expectations are factored into decision making today. The precise timing of exit strategies will depend on the strength