In 2008, the dramatic failure of Lehman Brothers was effective, if nothing else, in concentrating minds: the world looked into the abyss and took notice. In a historic display of consensus, the G-7 agreed to take whatever steps were required to stem the crisis.
They lowered policy interest rates sharply (Chart 1) and in a coordinated  BIS central bankers’ speeches  1  manner; they flooded the financial system with liquidity to quell the panic; and they stood behind systemically important financial institutions. These aggressive and coordinated policy actions prevented a financial and economic collapse that could have rivalled the Great Depression.