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With the start of the subprime financial crisis in August 2007, the dollar began an accelerated decline in value, falling by 9 percent against the euro. At that point, the financial crisis appeared to be only a U.S. problem. By mid-2008, however, the crisis spread to Europe. Discuss the reaction of the dollar to actions taken by European central banks in late 2008 to deal with the widening financial crisis.
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