Many central banks pursued so-called “go-stop” policies: policymakers would only stop stimulating the economy once public concern about inflation started to mount. [4] They would stop raising interest rates when unemployment reached levels unacceptable to political leaders and the broader public.
Meanwhile, the banking industry and the domestic financial market also showed a sound performance despite, as I previously mentioned, some pressures during the peak of the crisis brought about mainly by liquidity scarcity perception, and as an impact of flight to safety phenomenon.