Last Updated : Sep 15, 2018 12:29 PM IST | Source: Moneycontrol.com

How major economies in the world tackled 2008 financial crisis

Almost all major economies in the world announced stimulus packages and infused funds into the economy to check the impact of the crisis. Many companies were nationalised and some chose to merge as it became difficult to sustain alone

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United States | The US was most widely hit country during the crisis. Various financial arms of the US government doled out massive aid and bailout funds to revive the confidence in the market.
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United States | The US was most widely hit country during the crisis. Various financial arms of the US government doled out massive aid and bailout funds to revive the confidence in the market.

Germany | Soon after the collapse, the German government provided guarantee to all private bank accounts. Beside this, the government also decided to inject funds into the economy.
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Germany | Soon after the collapse, the German government provided guarantee to all private bank accounts. Beside this, the government also decided to inject funds into the economy.

France | President Nicolas Sarkozy decided to infuse funds into the banks and held an emergency summit to discuss the response to the crisis.
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France | President Nicolas Sarkozy decided to infuse funds into the banks and held an emergency summit to discuss the response to the crisis.

Italy | Apart from infusing funds into the financial system, the country also hosted G8 summit following the crisis.
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Italy | Apart from infusing funds into the financial system, the country also hosted G8 summit following the crisis.

Japan | The Asian economic power brought down the interest rates to a nominal level to increase the liquidity in the market. The government also announced a slew of stimulus packages.
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Japan | The Asian economic power brought down the interest rates to a nominal level to increase the liquidity in the market. The government also announced a slew of stimulus packages.

United Kingdom | The UK nationalised three of the largest banks in the country and eased norms for takeover of the largest financial institution.
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United Kingdom | The UK nationalised three of the largest banks in the country and eased norms for takeover of the largest financial institution.

Russia | Starting with injecting fund into the money market, the Russian government later provided long-term loans to state controlled banks.
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Russia | Starting with injecting fund into the money market, the Russian government later provided long-term loans to state controlled banks.

China | In the next three months of the fallout of the crisis, the Chinese government announced a massive stimulus package, reformed country’s tax structure and cut central bank rates.
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China | In the next three months of the fallout of the crisis, the Chinese government announced a massive stimulus package, reformed country’s tax structure and cut central bank rates.

India | The RBI almost halved the repo rate within six months of Lehman’s collapse. The government announced Rs 40,000 crore stimulus package and cut excise duties on products.
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India | The RBI almost halved the repo rate within six months of Lehman’s collapse. The government announced Rs 40,000 crore stimulus package and cut excise duties on products.

Brazil | The central bank established temporary swap lines with four other central banks and two of the largest banks in the country, Itaú Holding Financeira SA and Unibanco, agreed to merge.
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Brazil | The central bank established temporary swap lines with four other central banks and two of the largest banks in the country, Itaú Holding Financeira SA and Unibanco, agreed to merge.

First Published on Sep 15, 2018 12:27 pm