G7 and ECB: ‘Coordinated Action’
August 8th, 2011It’s like Groundhog Day, 2008 edition.
Via: Reuters:
A pledge of coordinated action by the world’s industrial powers wedded to hopes of aggressive bond buying from Europe’s central bank helped limit the fallout from the historic downgrade of the United States’ debt rating in Asia on Monday.
With the twin debt crises raging and stock markets plunging, the Group of Seven leaders said after a telephone consultation that they were “ready to take action to ensure stability and liquidity in financial markets”.
That followed a surprise statement from the European Central Bank (ECB) that it would “actively implement” its controversial bond-buying programme to fight the euro zone’s debt crisis. That stirred hopes it would buy Spanish and Italian government bonds to short-circuit financial market contagion.
