A common feature of these crises was that they grew out of weaknesses in domestic economic policy frameworks accentuated by international capital flows and often in combination with unsustainable fixed exchange rate pegs.
In addition, the information on economic activity abroad, particularly in Europe, seemed to be pointing to weaker demand for U.S. exports. Monetary policy Given the magnitude of the global financial crisis and its aftermath, the Federal Reserve acted to provide unprecedented monetary stimulus to promote and then support an economic recovery.