The European Central Bank
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[pic 1][pic 2][pic 3][pic 4][pic 5][pic 6]Task 1Q1In the backdrop of the sub-prime crisis countries had to take measures to stabilize the economy again. In 2007 a lot of central banks, including the US Federal Reserve and Bank of England became very proactive and they didnāt want to put more money in the system anymore or supporting the lending activities of financial institutions. Measures had to be taken, these were different for every country. First of all, the United states had to take measures. One of those measures was the adoption of a 700 billion dollar rescue package for the sinking financial system in the United States of America, this package is also known as the ātroubled asset relief programā or the TARP. The main target of implementing the troubled asset relief program was to provide liquidity to the banking system. Another measure that the USA took was the subsequent investments of huge amounts of money in its quantitative easing programme, since 2008 the USA invested $2.3 trillion in it and in September 2012 they said they were going to add an additional 40 billion dollar per month.The European Central Bank took similar measures. Those included a Securities Market Programme (SMP), they introduced this program in May 2010. The objective was to supply more liquidity into the banking system. Furthermore, in 2011 they injected Ā 489 billion euros into banks on a 3-year loan, with a 1% interest rate. Also the UK took measures to improve the economy, they introduced the Asset Purchase Facility.An article in The Guardian about the measurements:
Here is an interesting article about the measures taken by the ECB: