First, in order to ease confidence erosion and tension in money markets, the central banks conducted ample and enhanced liquidity provision by offering more frequent operations, to  1  For concise comparison of the two crises, see Nishimura, K. G., “ ‘The Past Does Not Repeat Itself, But It Rhymes’: Four Lessons Learned from the Financial Crises,” Remarks at the Panel Session “Responding to the Financial Crises: Lessons Learned” at the 45th Annual Conference on Bank Structure and Competition sponsored by the Federal Reserve Bank of Chicago on May 8, 2009, available on line at http://www.boj.or.jp/en/type/press/koen07/ko0905a.pdf.
2  In other words, central banks had to act as a “plumber” to fix broken and clogged pipes to facilitate liquidity going through the system.