More profound are the fundamental changes associated with the globalisation of finance, which has resulted in a more connected and inter-dependent world. Since the onset of the crisis, the policy response at the national level has been extensive and on an unprecedented scale, aimed to restore the functioning of the financial system and to arrest the steep deterioration in economic activity. Monetary policy was eased substantially, with interest rates brought down swiftly to historical lows. The cumulative fiscal expansion during the period 2007–2009, amounted to close to an average of four percent of GDP. Meanwhile, financial sector policies gave priority to stabilising financial markets and restoring credit flows. While an economic depression has been averted, monetary accommodation has continued with large scale financial market interventions to support the recovery. Fiscal policy, however, shifted to address fiscal sustainability and the increased public indebtedness, following the massive stimulus and support to the financial sector. The challenge is to achieve this consolidation, while ensuring that the economic recovery and market confidence are not undermined. On the wide-ranging financial reforms to address the weaknesses that led to the crisis and to strengthen the resilience of the financial sector, the emphasis has been on enhancing regulation and addressing macro-financial concerns to avoid the build-up of financial imbalances. These policies have also been supported by wide-ranging changes to the legislative framework and institutional structures. An area of policy that has not been as extensive is the cross-border dimension of policymaking, despite the growing inter-dependence between economies.
Chile) External prices (in $  -4.2 3.2 3.2 2.6 2.6 6.9 2.0 -0.4 -9.8  0.4 2.9 3.1 2.3 1.6 6.7 1.6 -1.2 -2.5  LME copper price $ WTI oil price $ Brent oil price $ Gasoline parity price $ Libor $ (nominal, 90 days)  249 49 52 467 0.3  220 43 44 389 0.8  2017 (f) 2018 (f) Dec.16 Mar.17 Dec.16 Mar.17 Report Report Report Report (annual change, percent) 1.9 1.1 4.6 -0.5 -0.5 2.8 3.2 3.3 3.4 3.5 3.0 3.3 3.4 3.5 3.5 2.3 2.6 2.8 2.8 2.9 1.6 2.3 2.3 2.3 2.3 6.7 6.2 6.4 6.0 6.2 1.7 1.5 1.7 1.6 1.7 -1.8 1.4 1.3 2.3 2.5 -2.7 1.1 2.1 1.7 1.3 (levels) 221 235 255 240 250 43 54 50 55 50 44 56 52 57 52 389 461 457 464 444 0.7 1.5 1.5 2.5 2.5  (e) Estimate. (f) Forecast. Source: Central Bank of Chile.