In mid-September of this year the crisis deteriorated very significantly and turned into a systemic threat to the solvency of important parts of the global financial system. It is no longer limited to advanced economies and is instead also affecting emerging economies. In addition, it has spilled over from the financial sphere to the real economy. Global challenges call for global responses.
Policy-makers across the globe have responded and are taking appropriate action to contain and alleviate the crisis. Central banks are playing a pivotal role in this regard, providing the necessary liquidity – sometimes in ways that were scarcely imaginable up until a few months ago – in order to ensure that financial markets and institutions can continue to function.