International liquidity plan

The central banks in North America and Euorope form a joint plan to stick more liquidity into the economy. From cbc.ca

Central banks around the world — including the Bank of Canada — have announced a co-ordinated plan to pump billions more into the financial system to ease the global credit crunch.

The U.S. Federal Reserve, the Bank of England, the European Central Bank and the Swiss National Bank are also part of the agreement. The Bank of Canada said the measures are "designed to address elevated pressures in short-term funding markets."

The Bank of Canada said it would provide at least $2 billion in funding on Thursday, along with another $1 billion next Tuesday. It will also expand the kind of securities it will accept as collateral.

The global plan will put more than $67 billion US in extra liquidity into the financial markets over the next six months — including more than $40 billion US by the Fed, $20 billion US for the ECB and $4 billion US for the Swiss National Bank.

The liquidity boost is meant to counter the credit crunch that followed the U.S. subprime mortgage crisis. Banks worldwide are still finding it difficult to raise money to lend out, even though central banks have injected huge amounts of money into the financial system since the credit crunch first hit in August....

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--I think an international plan in defiantly a good idea since what we have is defiantly an international problem. Working together also keeps central banks from free-riding on the liquidity other banks provide.