See L. Christiano, R. Motto and M. Rostagno (2005), “Financial Factors in Business Cycles”, presented at the IMFIRF Conference on DSGE Modelling at Policymaking Institutions: Progress and Prospects hosted by the Federal Reserve Board of Governors in Washington on 2-3 December.
A second set of tools involved the provision of liquidity directly to borrowers and investors in those credit markets key to households and businesses where the expanding crisis threatened to materially impede the availability of financing.