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It is also the only way for the European Central Bank to conduct an effective and responsive monetary policy, as does the US Federal Reserve (which would also be hard pressed to do its job properly if every morning it had to arbitrate between the debts of Texas, Wyoming and California).
The Fed itself was founded in response to the Panic of 1907, when the need for a lender of last resort for solvent but illiquid institutions and responsive monetary policy become obvious.
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Monetary policy has also been responsive and effective.
"Monetary policy has been and will continue to be responsive to rapidly changing circumstances," the vice chairman of the Fed, Roger Ferguson, told the Bond Market Association in New York today.
What about monetary policy?
Was it monetary policy?
That is monetary policy.
(See also monetary policy).
Loosen monetary policy?
2. Monetary policy works.
One is monetary policy credibility.
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