should the Federal Reserve intervene every time the stock market takes a plunge?

Essay specific features

 

Issue:

Business

 

Written by:

Jefferson S

 

Date added:

August 31, 2016

 

Level:

 

Grade:

A

 

No of pages / words:

5 / 1207

 

Was viewed:

4035 times

 

Rating of current essay:

 
Essay content:

So the central banks can keep the financial system working smoothly by ensuring that the banking system has enough liquidity. On the other hand pumping in too much money can entail in moral hazard,; if banks think that central banks will bail them out come what may, they will be more inclined to lend recklessly, i...
displayed 300 characters

Custom written essay

All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page

Order custom paper

Full essays database

You get access to all the essays and can view as many of them as you like for as little as $28.95/month

Buy database access

Order custom writing paper now!

  • Your research paper is written
    by certified writers
  • Your requirements and targets are
    always met
  • You are able to control the progress
    of your writing assignment
  • You get a chance to become an
    excellent student!

Get a price guote

 
 

Since a credit squeeze raises market interest rates it will slow the economy down. On the other hand if a central bank cut the interest rate too drastically it may push up inflation or cause the expectation of future inflation to rise. The medium term goal of price stability might be put at risk. In seeking to resolve these dilemmas it is important to keep these two tasks distinct since liquidity crisis is short term emergencies and macroeconomic stability is a medium term goal...
displayed 300 characters

General issues of this essay:

Related essays:

x
Services