By José Viñals
Governments and central banks rose to the challenge as the 2008–09 financial crisis unfolded, taking unprecedented steps to avoid the collapse of the global financial system and avert a devastating impact on the global economy. Liquidity support, capital infusions, and public guarantees were provided to banks and other financial institutions; policy interest rates were lowered substantially; and fiscal stimulus packages were introduced.
On top of this, international institutions like the IMF enhanced their lending facilities to help emerging markets and developing economies better cope with the threats posed by the crisis.
Filed under: Advanced Economies, Economic Crisis, Emerging Markets, Fiscal Stimulus | Tagged: capital infusions, Liquidity support, monetary accommodation, public deficits, public guarantees, quantitative easing, spillover effects | 1 Comment »