Question

How did european central bank tackle financial crisis?

Answer 1

${\huge {\mathfrak {Answer :-}}}$

➡️ Central banks cannot achieve price and financial stability with one instrument (interest rates).

➡️ A counter-cyclical regulatory system is needed to dampen asset booms and to smooth busting bubbles.

➡️ To use such macro-prudential instruments effectively, regulators need courage, quantitative triggers, and independence; they will be criticised by lenders, borrowers and politicians in both booms and busts.

That's it..