Action by the European Central Bank and the Federal Reserve in response to the crisis in 2008

Identifier:  TFG:1314

Handle: https://hdl.handle.net/20.500.11797/TFG1314

Authors:  Fosch Franch, Raimon

Abstract:
This paper is about the global financial crisis of 2008 and the resulting action done by the Fed and the ECB in order to overcome it. Initially, the crisis was focused in the USA where with the subprime mortgage crisis there was a chain of imprudences which caused the crisis. Thus, the ECB and the Fed carried out a monetary policy based on conventional and non-conventional measures. The results from this measures supposed, on the one hand, a bigger positive impact on the American economy because the set goals were achieved at the beginning of the implementation and, on the other hand, a confusing effect in the Euro Zone because although there were positive effects on some economies, the effects were not the expected on the whole. These results can be determined by the differences when carrying out the monetary policy because the Fed realized a faster, more convincing actionand they did whatever was in their hands to mend the crisis. However, the ECB worked in a more restrained ambconfusing way which caused a harder achievement of the set objectives.