We also expect to soon have in place a macroprudential policy framework that could be used to increase resilience in the banking system against a future housing downturn while having a moderating influence on credit expansion  3  http://www.demographia.com/dhi.pdf  4  http://www.imf.org/external/np/ms/2013/031813b.htm  5  http://www.treasury.govt.nz/publications/informationreleases/housing/pdfs/ha-202689.pdf  6  http://motu-www.motu.org.nz/wpapers/13_02.pdf  BIS central bankers’ speeches  7  to the housing sector.7 Macro-prudential policy is primarily aimed at enhancing financial stability, but it may also contribute to achieving monetary policy objectives.
That stimulus would then have to be countered again by monetary policy action. Hence an unduly activist policy would tend to cause volatility by itself. Moreover, differing time-lags between taking the decision and its coming into effect might well engender unwelcome cyclical effects.