Fed better prepared than us for financial crisis: ECB paper
A European Central Bank (ECB) paper published in July studies the differences in monetary policy conducted by the ECB and Federal Reserve over the past two years, and finds the Federal Reserve was able to react quicker to the crisis due to its greater emphasis on output, and its role as both central bank and regulator.
The authors, Ethan Cohen-Cole and Jonathan Morse, present a model economy with a leveraged and regulated financial sector. They apply the Taylor rule to the US and eurozone, which
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