IS DEFLATION TRAP A SERIOUS THREAT? CASE STUDY OF FED, ECB AND NBP
IS DEFLATION TRAP A SERIOUS THREAT? CASE STUDY OF FED, ECB AND NBP

Summary/Abstract: The goal of the paper is to compare nonstandard solutions implemented by Federal Reserve System, European Central Bank and National Bank of Poland in response to the outbreak of a subrime crisis in United States and to debt crisis in European Union. For that purpose there is carried out a comparative, descriptive analysis of institutional steps taken by the three central banks and the governments to preserve macroeconomic stability. The nonstandard measures allowed to avoid a comeback of the Great Depression and restored market’s confidence, unfortunately at the cost of decreased resilience for future possible crises along with many other medium and long run unintended consequences.

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