Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.

  • Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
  • What did the central banks do to stabilize the financial systems in 2007–2009?
  • In an effort to stabilize the financial system how much money, in U.S. dollar equivalent and as a percentage of the country’s GDP, did the European Central Bank, Bank of England, Bank of China, and the Federal Reserve put into the economy in 2008 and 2009?
  • How well did each country’s efforts work at stabilizing the economy?
  • What appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy? Did the United States use the same or different criteria?
  • To what extent to do you agree/disagree with the actions of the central banks during this time?