The regulatory response since 2008 has been aimed at addressing the leverage in the core of the financial system 2. Timely policy responses are effective. In a crisis, go fast and go hard. Don't die wondering 3. Plumbing can sometimes really matter. Keep the credit pipes flowing 4. Targeted policy responses are effective. These lessons are evident today.
The importance of a timely policy response is particularly evident. The size and rapidity of the fiscal and monetary policy responses have been unprecedented. The fiscal stimulus provided has been the largest outside wartime in many countries.