Posts tagged finance

1 results

Federal Reserve

It is much easier to operate verified in time reduction in interest rates than fine-tune to the situation by changing the tax. Moreover, Europe is still possible to loosen monetary policy. Even after the recent interest rate cuts in the eurozone is 2.5%, while in the uk – 2%. In this case, and the European Central Bank (ECB) and Bank of England, like the U.S. Federal Reserve, have proven – though not in equal measure – his desire to go for low cost in order to provide liquidity to their banking systems. Budget expenditures are difficult to quickly build and even harder – reduction after recovery. It should also indicate the fact that Europe has also stronger fiscal foundation. The fact that here – compared to the U.S. – a much larger share of gdp is created in the public sector, and therefore the decline in spending in the private sector has proportionally smaller effect on the economy as a […]

Tags: