%0 Journal Article
%T A Quantification Of The 2008-2009 US Bailout Package
%A Cicero I. LIMBEREA
%J Review of Economic and Business Studies (REBS)
%D 2009
%I Alexandru Ioan Cuza University of Iasi
%X By examining the credit crunch causes and effects, this paper reflects on the necessity of the banks bailout package and its alternatives and quantifies a maximum non-inflationary bailout amount which is unlikely to cause permanent adjustments in the long term (trade-weighted) exchange rate equilibrium level of the US dollar. Furthermore it determines that the current bailout amounts are less than the maximum non-inflationary bailout amount and determines that to resolve the underlying credit crunch problem, an increase in non-bank bailout M1 and/or a tax reduction is necessary.
%K credit crunch
%K M1
%K M3
%K ISLM equilibrium
%K demand shock
%K Keynesian multiplier
%K monetary policy
%K fiscal policy
%K mortgage prepayments changes
%K MBS
%K velocity of money supply
%K long term equilibrium of exchange rates
%U http://rebs.ro/resource/REBS_3/Research%20Paper/Cicero_LIMBEREA_-_A_Quantification_Of_The_2008-2009.pdf