French President Nicolas Sarkozy and France s central bank (a member of the ECB) were less timid they urged Italian and Spanish banks to buy their governments debt.

The ECB can curb the euro s appreciation through purchases of foreign currency.

Having their bonds purchased by the European Central Bank did not keep Greece, Ireland, and Portugal from needing a bailout.

It is likely that Draghi s statement will indeed be followed by ECB purchases of Spanish (and Italian) sovereign bonds.

But that, too, went out the window in May, when it started buying even Greek junk bonds.

By buying government bonds for cash, a central bank can satisfy demand and push down the price of cash.

It is also what inspired the European Central Bank to launch an asset purchase program, which has been used to buy Greek and Portuguese government bonds.

Finally, by offering to buy shares in a mutual fund of bank stocks, the central bank gives private investors the incentive and the confidence to recapitalize the banking system.

By offering to buy shares in the mutual fund at a minimum preset price, the central bank would provide a way of channeling funds into the financial system in times of crisis.

In 1992, Sweden s central bank, the Riksbank, allowed private bank equity holders to be wiped out, but it rescued depositors and creditors by buying up risky assets of failing institutions.

LONDON The European Central Bank s recently announced policy of bond buying, what it calls outright monetary transactions (OMTs) marks a convergence of European central banks with their Anglo Saxon counterparts.

And the European Central Bank has begun to buy government bonds, including those of Greece, at prices well above those that would prevail in a free market.

Draghi left it up to national banks to decide whether to use the liquidity to buy high yield government bonds. French President Nicolas Sarkozy and France s central bank (a member of the ECB) were less timid they urged Italian and Spanish banks to buy their governments debt.

Disagreement among and between heads of state and the ECB over the Bank s purchases of distressed sovereign debt have only added to the uncertainty.

This comes despite the combined bailout package that the European Union, International Monetary Fund, and European Central Bank created for Greece in May, and despite the ECB s continuing program of buying peripheral EU countries bonds.

The ECB s long term refinancing operation enabled Spanish and Italian banks to buy their own countries bonds and earn a large spread.

Interest rates will have to be slashed, and the ECB will have to follow up with large scale asset purchases like those recently announced by the Swiss National Bank.

In effect, the European Union and the ECB are now being forced to return with overly generous support to the weak countries including buying up all their debt, if necessary.

In 1992, Sweden s central bank, the Riksbank, allowed private bank equity holders to be wiped out, but it rescued depositors and creditors by buying up risky assets of failing institutions. Sweden recovered.

By guaranteeing to buy shares of a mutual fund, the central bank would provide an incentive for private investors to channel money to the stronger parts of the banking system while allowing the weaker parts to fail.

I forgot to buy sugar.

I forgot to buy bread.

Purchase of vehicles 126.6

In particular, since the European Central Bank has clearly rejected quantitative easing, investors will want to buy euro bonds issued by Germany and other European countries that are not in danger of default.

From Central Bank to Central Planning?

You can't buy happiness.

Tom would like to buy a house.

Tom wants to buy a house.

Don't forget to buy bread!

6141 Purchase of local goods

Therefore, they are continuing to buy weapons.

But their choice boils down to buying US dollars or buying US goods.

Markets noticed that the euro seemed caught between a rock (the EFSF s limited borrowing capacity) and a hard place (the European Central Bank s great reluctance to engage in large scale purchases of financially troubled governments bonds).

That would remove the serious risk that the ECB could start buying bonds on the basis of agreed fiscal packages, and then be forced to react if governments fall short on implementing them.

Draghi s strong indeed, unprecedented statement was widely interpreted as signaling that the ECB would soon revive its bond purchase program, focusing on Spanish debt in particular.

Once the first two elements of the plan are in place, there should be little need for the third bond purchases by the ECB in the secondary market in order to narrow interest rate spreads and provide further confidence.

He wants to buy a pearl necklace for his wife.

She wants to buy a present for her boyfriend.

I wanted to buy a painting from Tom.

I wanted to buy one of Tom's paintings.

Buying America, Chinese Style

1. Purchase of vehicles 126 600

Why do you want to buy this book?

Conventional monetary policy operates by altering short term interest rates, which includes the central bank buying and selling short term government debt. No intervention in the foreign exchange market buying and selling foreign currency is involved.

Relatively prosperous Europeans tend not to purchase a car merely to get from point A to point B, shoes to keep their feet dry, a watch just to tell the time, or a bottle of water only to quench their thirst.