Coordination may be particularly important in a situation in which monetary and macro prudential policy are in conflict. Since asset price booms are typically associated with rapid growth and rising inflation pressures, they may warrant both tighter macro prudential and monetary policy. As noted by Beau et al.
(2011), a conflict between the two policies is most likely to arise in the case of positive supply shocks, which tend to reduce inflation pressures  32  12  See Beau, Clerc and Mojon (2011). BIS central bankers’ speeches  and thus permit a relaxation of monetary policy, and increase asset prices and raising the risk of a bubble forming.