MY POINT OF VIEW

 When governments from major economies around the Globe took upon coordinated actions to rescue the near-collapse financial system, many optimists thought the crisis had been brought under control.
Governments once in their life times ignored business as usual given the size of the financial crisis and  provided huge sums of money as guarantee  to banks, that were fast losing confidence in each other and as a result sky-rocketing the inter-bank interest rates on their overnight loans.  (Overnight loans are loans that Banks give each other at the end of each day. Banks with surplus borrow it out to other banks in deficits at specific interest rates, which is very often between 2 and 3 per cent).

These coordinated actions from the governments came as manner from heaven to many financial institutions that were next in line to collapse, just as many others had melted. But sadly enough, the promises were short -l ife, given the havoc the crisis had impounded on many economies around the world.
The crisis had translated into recession in some countries, and even bankrupt some entire nations, like the Iceland saga. If you haven’t heard, the wealthy nation Iceland went bankrupt as the crisis kept hunting for more victims to claim. Its financial system collapsed completely, with countries such as the UK losing huge sums in saving. The incident even triggered the UK to raise and apply the anti-terrorism act against Iceland in order to secure the money lost. At the time of writing this article, it is still a major row between the two countries and no agreement has been reached yet, on how Iceland will pay back the Billions or pounds lost in savings.

Even if the government rescue plans came late, it was better than living the financial system to itself. While the counter action that began in Britain under the auspices of Gordon Brown has been emulated in many other nations, the outcomes are having little effect on the economy even in the UK itself.
So what can be done to contain the situation that has fast cascaded into a recession? Keynesianism is the answer!

 "While adding more CCTVs" on the financial system and calling for more government restrictions, governments must open their wallet and sprinkle more currency into their various systems through government spending.

The Gordon Brown Ideology (to provide guarantee for overnight loans between banks) seem to be having very little effect, despite being welcomed with both hands.

At this particular moment and from my humble perspective, the most ideal thing to do will be to cut the interest rate even further despite the looming inflation.
There must be a price, either the governments’ fold its arms and watch the economy sink further into a recession or import inflation through spending and interest rate cut. Governments must make a choice, and that choice must be fast.

Inflation or Recession? The choice is theirs.