Central Banks Cut Costs of Borrowing Dollars

Learning its lesson from the Great Depression of the 1930’s, the U.S. Federal Reserve, as well as the central banks of several other countries, are working together to ease the debt crisis in Europe. One of these measures is to lower the overnight borrowing rate by half a percent to 0.58% to alleviate any last minute credit crunches, namely, further bank runs. This option has also been extended for an additional six months in anticipation of potential further crises. Bond yields on European bonds have dropped, which ultimately helps to lighten the load of the European debt. The concerted effort of the central banks is an acknowledgement that the global economy is interconnected and is therefore in the best interest for central banks to work together and prevent a global economic standstill.

http://www.bloomberg.com/news/2011-11-30/fed-five-central-banks-lower-interest-rate-on-dollar-swaps.html