Policies to tide over recession
2008-2009 was almost a mirror image of the 1930’s as global currencies went on a downhill as regarding their worth. Obviously, drastic steps have been taken since then to move over the turmoil. These steps seem to have created some balance.
Firstly, lending and eventual borrowing rates were curtailed quite significantly on a universal basis. Banks all over the world were given some leverage so as to set small goals for specific time periods.
There was drastic reduction of fixed assets and many employees were paid off. This was a two-edged sword, as retention of talents with a broader scale of work was bound to reflect on their relative capabilities.
Leeway to financial institutions was on a conditional basis. Some of them had to be scrapped. The World Bank and IMF have been on their toes to do the needful. Several economists and financial advisors have been racking their minds in making this effort successful.
