It issues Federal Reserve Notes, clears checks, acts as a fiscal agent to the federal government, and audits and maintains competition in the banking system. ... After the collapse of Lehman Brothers, the ECB also resulted in unconventional monetary policy, in addition to convention policy, to try and revive the struggling economy. The conventional monetary policy used by the ECB is changes in the interest rates, which was immediately implemented following the collapse of Lehman Brothers. ... The first unconventional monetary policy tool was the fixed-rate full-allotment policy (FRFA). ... Th...

• Word Count: 3183
• Approx Pages: 13
• Has Bibliography
• Grade Level: Undergraduate

"We expect the markets to reflect the true value of currency - the way that currencies ought to be valued is based upon economic activity, a fiscal policy, monetary policy of the respective governments, the potential for growth, and the potential for long-term viability of economies that's how our respective currencies ought to be valued- (President Bush) Over the past two years the value of the American dollar relative to other currencies, such as the Japanese Yen and the Euro, has declined dramatically. ... As the above quote from President Bush points out, the current administratio...

• Word Count: 1225
• Approx Pages: 5
• Has Bibliography
• Grade Level: Undergraduate

However, the main constructive criticism to this strategy is that it is not cost effective fiscally and morally as well as this strategies tends result in accumulating a lot of resistance from the people. ... Internally, this can be done by the creation of elite subsidies and incentives such as luxurious items and monetary goods to encourage order, cooperation, and compliance from individuals who have power and energy to create potential chaos in other words states are purchasing the compliance of the elites. Externally, states can grant trading privileges for cooperating states thus increas...

• Word Count: 2529
• Approx Pages: 10
• Grade Level: Undergraduate

Thus, inflation is a monetary phenomena. ... What Prime Minister Shinzo Abe and the leaders he has placed at the Bank of Japan is encouraging inflation through, just to sum up, monetary and fiscal policy, to encourage economic growth, as well as a target with the Bank of Japan to target inflation at 2% together with Quantitative Easing methods-the excessive buying of bonds by the government. ...

• Word Count: 987
• Approx Pages: 4
• Grade Level: Undergraduate