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There have been many policies implemented to try to do this. Some of the best-known of these include:
- The TARP program that was meant to bail out the financial system. In this program, the government bought "toxic" assets from the financial institutions so those institutions would not be crushed under the weight of the bad loans.
- The "stimulus package" passed under President Obama. This was a package of government spending initiatives that were meant to stimulate demand in the economy. The idea was that more government spending would put more money in people's pockets. They could then spend that money and the economy would improve.
- Actions by the Fed. These include keeping interest rates very low and doing "quantitative easing." Both of these are meant to increase the money supply so that it will be easier for people and businesses to borrow money. This is meant to lead to more business investments and more people borrowing to buy "big ticket" items.
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