Advanced eonomies are experiencing a serious downturn in the face of the most dangerous shock in mature financial markets since the 1930s. The major advanced economies are in recession, following the world economy’s longest run of high growth, low inflation, and low interest rates in the postwar period.

To combat the crisis, leaders of advanced economies have undertaken an unprecedented and concerted fiscal expansion to create jobs. Central banks in many advanced economies have also taken exceptional action, aggressively cutting interest rates in many cases and pledging to maintain expansionary policies for as long as needed.

And policymakers are taking steps to restore the normal flow of credit through the financial system—a move designed to breathe new life into the economy—although this is an area where the IMF thinks more needs to be done.

This page highlights the main policy issues facing the advanced economies, as well as the IMF’s work to monitor, advise, and support them.