THE CRITICAL ROLE OF ECB IN ADDRESSING THE EFFECTS OF THE RECENT GLOBAL FINANCIAL CRISIS IN THE EUROZONE (original) (raw)
The Eurozone area was among the largest victims of the recent global financial crisis, as many member states faced bankruptcy or showed the derailment of their sovereign debts and deceleration of growth, if not recession. The present study tries to shed light on the crucial role of the European Central Bank (ECB) in addressing the severe negative effects of the credit crunch in the Eurozone, based on a qualitative assessment of the data provided on its official published reports. The analysis covers all the related measures taken, both conventional and unconventional, for the time period up to 2014, which focused on addressing the impairments caused in the existing transmission mechanism. Even more, it is pointed out that there is still a long way to run in order to achieve the desirable banking convergence. In conclusion, certain policies are suggested so as the role of ECB to be more effective and ensure financial stability along with equal and sustainable growth among all the member states, a necessary treaty for social welfare.
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