Historically, governments have used a variety of tools to address financial crisis and recessions with policies of either containment or resolution. For example, in 2008, government intervention moved from the provision of short-term liquidity, through distressed asset funds to medium-term guarantees to full-scale bank capital injections, nationalization and brokered rescues. Whilst the banking system seems secure in the coronacrisis, I think it is inevitable that governments will borrow from previous playbooks.
I surveyed the literature on government response to previous crisis and identified three recurring responses, likely applicable in 2020 too. These being, restoring functioning markets when and if impaired, expansionary monetary policy to catalyze economic and expansion in fiscal policy to support private sector spending slowdown. We present this in a visual, highlighting recent response in 2008 for color.