Regulators identified some of these issues in real time; for example, federal banking regulators issued new guidance on nontraditional mortgage lending and on commercial real estate lending.
It has been argued, for example, that policy failed to anticipate the emerging inflation of the 1970s, and by fostering excessive monetary creation, contributed to the inflationary upsurge. Surely, it was maintained, some monetary policy rule, however imperfect, would have delivered far superior performance. Even if true in this case, though, policy rules might not always be preferable.