While a range of instruments is being viewed enthusiastically by some commentators, we must be careful about unintended consequences. The case for any particular instrument needs to be informed by a full analysis of its likely effectiveness in a real-world setting, along with the associated costs of deploying it.
It is important here to be clear whether tools would be aimed at building resilience and/or dampening excessive credit growth. 2  BIS central bankers’ speeches  We also need to think about policies that address the cross-sectional dimension as well as the time dimension.