Exit strategy

A term that emerged primarily in the course of the government’s rescue measures for distressed banks – the term “distressed banks” was chosen as the “word of the year” in Germany in 2008 – and industries in the course of the financial crisis that followed the subprime crisis in 2007 for guidelines for the government and the central bank on how, when and where money that has been injected into the economic cycle can be withdrawn from circulation again. This is because both the clandestine deficit financing via the issuance of government bonds by debtor states and the bailout packages of governments and central banks inflate the money supply. This triggers the danger that as soon as the economy recovers, this extra money will lead to speculative bubbles, thereby laying the seeds for a new crisis. – Some of the ECB’s measures were temporary, so that if they were not extended, they would expire on their own. The money made available to the banks thus inevitably flowed back to the central bank at the end of the term. – See fear, perverse, exit, bad bank model, German, carry trades, European Monetary Union, fundamental error, ECB sin, financial market stabilization agency, quantitative easing, rescue, return ideology, stealth policy, sinking fund, Tina, redistribution, central bank-influenced, central bank bonds, Zetts, three. – Cf. ECB Monthly Bulletin, April 2010, pp. 29 et seq. (Behavior of Actors with Regard to the Withdrawal of Special Monetary Policy Measures; Overviews).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
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