It also serves to highlight how the behavior of the banking system during the asset-price run-up may influence subsequent outcomes. Lastly, it points to the potentially crucial role played by fiscal and monetary policies in recoveries following asset-price-bust recessions. Last, let us examine the U.S. recession of 2001 and the subsequent, ongoing recovery.
We have prepared the U.S. data in the same manner as in the U.K. and Japanese cases (figure 9-figure 11). The evolution of disaggregated asset prices (figure 10) shows that the unusually large changes surrounding the 2001 recession reflected the movement of equity prices alone.