BIS Review 106/2010  3  Monetary policy: thought and action Let us look at the thinking and actions on the monetary front against the backdrop laid out above. As already indicated, drastic monetary actions were taken during the last quarter of 2008, sharply bringing down both the policy rates and the CRR.
Looking back on this period, it can be reasonably argued that these measures contributed to the stabilization of the economy and the relatively small impact of the crisis by infusing massive amounts of liquidity into the system. The fiscal stimulus, which came in various forms during the same period, helped by directly creating demand in a situation in which private demand was sluggish.