Conclusion To conclude, in response to the crisis, governments and central banks across the globe have taken immediate and unprecedented measures. Governments have implemented measures to rescue the banking sector and stimulate the economy.
Central banks have lowered rates to very low levels in response to receding inflationary pressures and risks; and they have provided ample liquidity to the banking system, so as to support the transmission mechanism of monetary policy. The key questions are when and how to phase out these measures once the overall situation starts to return to normal.