Cushioning Global Effects of Euro Crisis

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This article in the Wall Street Journal on Thursday discusses the joint action taken by the World's major central banks to provide cheap emergency loans in US dollar currency to the banks of Europe in an attempt to ease the growing tension there.  As discussed in class, the exchange rate plays a huge role in foreign investments; in the case of the euro crisis however, dropping interest rates to force these emergency loans is an something done only in crisis situations, rather than under normal market conditions.