This would be the case, for example, if a sharp increase in real estate prices led to an excessive rise in lending and a loosening of credit standards. Prices are continuing to rise dynamically. Bundesbank estimates indicate that house prices in German towns and cities were overvalued by between 15% and 30% in 2017.
Therefore, patiently rebuilding the power of monetary policy tools is a great step towards consolidating growth and stability. Meanwhile, monetary and financial policy should be conceived under a general equilibrium approach, where fiscal solvency, the monetary balance and external sustainability are mutually determined.