Moreover, the evidence suggests that, even if applied in a more time-varying way, such measures have more indirect and possibly limited effects on cyclical adjustments and the costs of loans. 8 This may make them less effective in restraining excessive credit demand in an environment of exuberant expectations of house price appreciation.
Sound financial decisions are made when consumers have access to information that is clear and culturally relevant and that is provided at critical “teachable” moments, such as when a consumer is financing education, buying a car, starting a family, purchasing a house, or planning for retirement. These are just a few examples.