Concerted Action & Support In Face Of Mounting Crisis

摘要

Co-ordinated action by central banks seems to have lifted equity markets at least for the present. As some commercial banks had experienced difficulties securing US dollar loans for more than a few days, the European Central Bank, the US Federal Reserve, the Bank of Japan, the Swiss National Bank and the Bank of England will cooperate to offer three-month dollar loans in an attempt to improve liquidity. Accompanying this concerted action was a verbal commitment from the French president and the German chancellor to keep Greece in the eurozone, which, given the apparent failure of the Greek government to meet its targets for revenue and spending this year, had led to renewed concern over the country's future within the single currency. Greek GDP fell at an annual rate of 7.3% in the 2q11, an even steeper drop than the previous estimate of minus 6.7%.