In the last issue of Intereconomics, a first article by the present authors looked into the measures that central banks have taken in support of the financial sector in an effort to mitigate the effects of the financial crisis. This second article describes the measures taken by governments to...

The extensive public sector measures in support of the financial sector have been key to managing the financial crisis that erupted in mid-2007 and intensified after the bankruptcy of Lehman Brothers. This article looks into the measures taken by central banks to contain the impact of the...

At the height of the European sovereign debt crisis, the European Central Bank decided to purchase distressed European government bonds. Even worse, and more importantly, the ECB is providing direct support of several hundred billions of euros to troubled banks via its normal monetary policy...