1. What Role Should the European Central Bank Play in the Current Essay

1. What Role Should the European Central Bank Play in the Current European Financial or Public Debt Crisis - Essay Example3The present European economic crisis has construct up as a result of the countries within the continent struggling to pay up the debts they swallow been building up in the past few decades. Several countries within the meat have failed to al-Quran an economic growth in turn failing to pay the bondholders their required guarantees. These countries include Spain, Italy, Portugal, Greece and Ireland. 4The crisis was exposed by the American recession of the year 2007-2008 that made many countries in Europe experience slack up fiscal growths due to the unsustainable fiscal policies that most European countries were utilizing.5 The countries that had not made pecuniary reforms such as Greece were the first to feel the pain of the crisis when they experienced very high deficits in their budgets which were also unsustainable. 6 Investors who had interests within t he countries that were experiencing pecuniary difficulties in turn demanded superior yields on their bonds raising the costs of these countries debts.7The unions central blaspheme should resist the idea of printing more money so that they can buy out the unions distressed debts.8 In the month of December 2011, the central bank availed credit facilities to the troubled financial institutions that were within the region. This move that the central bank has been putting much effort in has not helped in solving the continents problems, however, it helped in boosting the confidence of potential investors who now perceive the economies that were largely in debt as experiencing slow growths in their activities. This move has additionally helped in preventing the collapse of the economies of some member countries along with keeping the European currency stable in the global monetary markets.9The unions central bank should strengthen legal instruments such as the European monetary stabili ty facility with the cooperation of the