eco HW


Prompts: In general, explain the actions of the European Central Bank (the European counterpart of the US Federal Reserve) in terms of what we've learned in class--why are they holding rates low?  Why are they starting to purchase bonds in large quantities?  How would this explain the analysts' expectations of growth of GDP increasing from 1.0% to 1.5%?  Why is what Europe does important to the United States?  Why might the United States be tapering off their Quantative Easing (purchasing bonds at a high rate) recently, and what might have prompted the European Central Bank to start purchasing bonds at a high rate?

Why the focus in interest rates and unemployment and why can they keep the interest rates low?  How do bond purchases tie in with the interest rates?

    • 6 years ago
    • 20

    Purchase the answer to view it

    • attachment