Increasing Intervention to Deal With the Market Crisis
Mohamed El-Erian, co-CEO of Pimco | March 18, 2008
Europe and Japan's deafening silence in the face of the US' market crisis is exacerbating the credit turmoil. ++ US policymakers should alter contracts for mortgage holders and/or use the government's balance sheet to support the housing market. ++ The Federal Reserve must act in unfamiliar ways, because its traditional instruments are "too blunt." ++ Coordination with international central banks is needed.
Tags: | credit crunch |
financial markets |
