An Economic Issue on Global Central Banking - Essay Example

Despite the efforts to curb inflation, its target has stagnated at ECB 2%. In March, the euro was $1.40 against the dollar with the rate of inflation at 0.5%; the lowest rate since the country was hit by the worst economic depression in 2009. What interests me is how analysts assume that reducing interest rates, acquiring assets in huge portions, and funding the bank system can be an option for ending inflation. 

For this reason, they have issued sanctions for China to review her motives. However, through such currency uncertainty, China is in a good position to attract investors.
Conclusion

Economic problems are present in all countries. This makes it impossible o use similar mechanisms in reversing the problems. As seen, the European nation is yet to recover from the 2009 great economic depression. There have been a lot of suggestions on how to counter the menace. This includes reducing interest rates and funding the bank. China finds it nice to use currency uncertainty to improve its economy.