They cut the grass at a different level, so to speak. This is of particular use with respect to the euro area. Macroprudential tools can be employed at the level of member countries to combat problematic developments in national financial systems – developments that cannot be counteracted by the single monetary policy.
The exceptional growth over and above this for the past few years was made possible by a high degree of slack in the economy and in particular, by a rather low employment rate. This good performance contributed to a welcome increase in living standards and employment. Now, however, there is mounting evidence of overheating in the domestic economy.