The ECB has taken very important actions to inject liquidity into the banking system.
Moreover, printing yen to buy dollars is one way to inject liquidity into Japan's moribund financial system.
However, the Fed acted aggressively in 1987 to inject liquidity into the financial system and stabilized the situation.
Longer-term refinancing operations, or LTROs, are a form of short-term repo auctions held by the ECB to inject liquidity into the fiancial system.
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This has led some to reckon that with an improving U.S. economy the Fed may not need to continue to inject liquidity into the monetary system.
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He also said that the response of authorities to inject liquidity into the economy had stabilised the markets, but the priority now should be to steer the economy back to growth.
The doubts burst into the open on August 9th when central banks were forced to inject liquidity into the overnight money markets because banks were charging punitive rates to lend to each other.
That has prompted Mr Carney to inject liquidity.
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The Fed has been finding ways to inject liquidity to open up markets, but the amout of fear is huge and until the losses are known and it's known who's holding the bag, it's going to be difficult to get these markets unlocked.
Although the details are yet to be settled, the loans are expected to be used to set up a fund to cushion a dollarised Ecuador against economic shocks from abroad, to give subsidised loans to get businesses going again, to inject liquidity into a broken banking system, and to pay for schemes aimed at helping the poor.
Fast-forward to November, the Fed is posed to inject more liquidity into the system by buying US Treasurys.
Spain, sucked into a worsening recession, is pleading for the European Central Bank (ECB) to inject more liquidity into its banks and buy its government bonds.
With ECB President Mario Draghi and Fed Chairman Ben Bernanke in a monetary arms race to see who can inject more liquidity into the global financial system, global equity markets should enjoy a spectacular finish to the year.
The lack of a developed financial market has the flipside of making it difficult for the central bank to inject or withdraw kyat liquidity or to intervene in the dollar market as a way of combatting any sharp moves in the exchange rate, as most of it occurs with back-alley money changers.
Now the ECB needs to act more aggressively as lender of last resort, expand its balance sheet, and inject much needed liquidity into the banking system.
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