We learned in two lectures in class the importance of interest rates and their effect on stimulating our economy. In recent news, The Fed and several other various banks are planning to lower interest rates on dollar liquidity swaps. Essentially, this makes it cheaper for banks around the world to trade in U.S. dollars. Ultimately, this is being done to help alleviate the issues on supply of credit to households and businesses in order to encourage and foster economic activity.
http://money.cnn.com/2011/11/30/markets/markets_newyork/index.htm
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