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Sat 12 Dec 2007Central banks and the credit crunch
The credit crunch is a global problem and last Wednesday's announcement by five of the world's major central banks of a co-ordinated intervention to boost liquidity in the financial system was a belated recognition of this fact.
Since August national central banks, individually, have made several unco-ordinated attempts to overcome difficulties in domestic credit markets, but without much success. The credit crunch stems from the sub-prime loan debacle in the United States, but its roots lie much deeper.
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