In various countries there is still room for improvement to extend the macroprudential toolbox or fine-tune the current instruments. Moreover, in most countries the tax system can be improved a lot to reduce cyclicality. Residential real estate taxation should therefore gradually transition to a level much more comparable with other sources of wealth.
Each type of indicator has strengths and weaknesses,8 and the signals will be more credible if they are corroborated by more than one indicator.9 Expectations are not static. It is normal to see them fluctuate in response to changes in business conditions.