One of the most important legacies of the crisis will be the restoration of financial stability policy to co-equal status with monetary policy. Monetary policy tools While central banks may have left their monetary policy frameworks largely unchanged through the Great Recession, they have considerably widened their set of tools for implementing those frameworks.
Following the crisis and the downturn in the global economy that started in 2008, central banks responded with a forceful application of their usual policy tools, most prominently sharp reductions in short-term interest rates.