On the other hand, financial markets have been nervous due to some concern about consistency between monetary policy and fiscal policy, and also because of the difficulty in accurately measuring monetary tightening effects as there is a time lag between policy decisions and the materialization of their effects.
17 In this case, financial regulators at central banks and other institutions may have a greater likelihood of identifying that a bubble is in progress; for example, they might have information that lenders have weakened their underwriting standards and that credit extension is rising at abnormally high rates.