On the other hand, while fiscal policy turned very expansionary after 2000, it largely offset the sharp increase in corporate net saving as the investment boom ended. Households, which had already turned net borrowers in the late 1990s, ran increasingly larger saving deficits as the housing boom got under way.
The Bank is, therefore, currently in the process of developing an integrated framework for a macroprudential policy approach to achieve its financial stability objective, and to help co-ordinate financial stability policy of other authorities.