In response to the recent stress, the Federal Reserve, working with the Treasury Department and the Federal Deposit Insurance Corporation, took decisive action to strengthen confidence in the banking system. Employing financial stability tools in response to liquidity pressures allows us to continue to focus on setting monetary policy to achieve our dual mandate of maximum employment and price stability.
In the case of Japan, since it was mainly  BIS Review 144/2009  3  the corporate sector that had to make balance-sheet adjustments, progress in the adjustment process for the economy overall was achieved through an increase in exports owing to high global economic growth.