The second policy is to affect the risk spread across assets, between those whose markets are particularly impaired and those that are more functioning. Such a policy would be usually referred as “credit easing”. The two types of policies affect differently the composition of the central bank’s balance sheet.
How severe could be the consequences of Y2K problems emanating from abroad? The number of possible scenarios of this type is endless, and today no one can say with absolute confidence how severe any Y2K disruptions could be, or how a failure in one sector would influence operations in others.