The Euro in Crisis Decision Time at the European Central Bank And answer the following questions:

3. Why did the ECB wait until August 2008 to begin lowering interest rates? Why did the ECB not lower its core interest rates below 1%? Why did the ECB not increase its balance sheet as aggressively as the U.S. Fed? The ECB responded less aggressively than the US Federal Reserve to the crisis. Why? What has been the cost of the ECBs more moderate response?