The Federal Reserve has announced a series of extraordinary measures to unclog credit markets. However, credit markets remain frozen, and as the graph above indicates, the equity markets have responded negatively. The continued credit market freeze points to a need for strong policy action. The following articles discuss a possible role for international coordination through the G7 and IMF.

Baldwin, Eichengreen: Rescuing Our Jobs and Savings (VoxEu.org)
Bergsten, Subramanian: Globalizing the Crisis Response
Buiter: The Case for a Coordinated Rate Cut
Alesina et al: Europe’s Banking Crisis Needs a Common Solution