What were the various solutions to the crisis?

The global financial crisis of 2008 was managed by governments and central banks around the world using a variety of measures to help stabilize markets. These measures fell into four broad categories: 1. Injecting capital: Governments and central banks created and/or purchased financial assets directly to increase the level of liquidity in the banking system and to support the value of financial assets. This was accomplished by providing banks with additional capital and purchasing distressed mortgage-backed securities. 2. Quantitative easing: Central banks used a monetary policy tool known as quantitative easing to increase the money supply by purchasing existing bonds and other financial assets. This allowed more money to move between banks, thereby increasing liquidity in the banking system. 3. Tax and spending plans: Governments enacted legislation to increase economic stimulus, such as public spending, tax cuts, and changes to welfare rules. 4. Regulatory reform: Governments required banks to increase their capital requirements, be more transparent in the pricing of derivatives, and limit the activities of riskier types of financial derivative products. These new regulations are aimed at reducing systemic risk in the banking system.