14 These guidelines contained specific numerical thresholds for the ratios of construction and total CRE lending to an institution’s total capital, as well as for identifying rapid growth of such lending.
Gourinchas and Jeanne have argued that the trade-off between a higher interest rate and a higher inflation rate may still justify the central bank acting as lender of last resort to the government (see Gourinchas, P.O. and Jeanne, O. (2012), “Global Safe Assets”, Bank for International Settlements, Working Paper, No 399, December. 26 A conclusion which echoes Goodhart (1998, op. cit.).