Types of Stimulus Packages and Consolidation

Abstract

During the 2008 global financial crisis, most of the governments proposed and implemented stimulus packages in order to stabilize their economy. The stimulus packages by definition are fiscal measures (government spending or tax cuts), including those aimed at stabilizing banks and other financial institutions as bank rescue or financial assistance packages (Nanto 2009). On the contrary, countries required bailout could not offer stimulus but need consolidation in order to obtain external financial support, such as Greece and Portugal. To coordinate global efforts, world leaders began a series of international meetings (please refer to Appendix A) to address changes in policies, regulations, oversight, and enforcement.