Hypothesis Identification Article Analysis Essay - 2

Hypothesis Identification Article Analysis - Essay Example This hypothesis holds that if the European central bank lends money to subsidiary banks at times no one can led will ensure that little money is released in the European economy and as a result the currency will hike its value and protect the country from inflation, .(Forest &Edward124) this measure will stabilize the euro and the economic growth and development will be realized; since investors in global markets will reduce their imports and hence the supply will be low thus demand will be very high. The hypothesis explains that forces of demand and supply will be tamed. This hypothesis is reffered to as positive hypothesis, from the article; this was rejected at the expense of the null hypothesis. The null hypothesis holded because the research findings proved that if the European central bank becomes the lender of the last result it may not safeguard the value of the euro. (Forest &Edward117) The implication on the rejection of this hypothesis was on the grounds that, the lender of the last result does not underwrite the financial risk consequences and that the policy is effectively an efficient subsidy system.(Forest