While it can be argued that the financial stability framework, has performed relatively well – for instance in the field of crisis management and in light of the recent initiatives I have already mentioned, there is a need for a more broad, frequent and timely exchange of information as well as a strengthened cooperation and coordination between competent authorities.
Note, however, that as a per cent of GDP, housing is still high by historical standards. A second reason for the slowing in domestic demand may be the indirect effects of the change in the housing market. These are harder to measure, but there is some evidence that the flattening of house prices has led households to tighten their belts.