From the early 1990s to the early 2000s, the stock yield and the Treasury yield moved almost in tandem and the yield spread remained mostly around zero; after that, however, we find persistent and very large spreads.
Today’s challenges call for a macroprudential policy which is alert and capable. 6  Conclusion  Let me conclude with a very brief outlook. At the current stage, good macroprudential regulation is more about basics such as defining properly the objective, compiling the efficient toolkit and setting up the competent institutions. One day, this part of the job will be done.