This step provides information about the effectiveness of the measure(s) taken, about intended or unintended side effects, and it also serves as an input into a possible recalibration of the policy instruments. In a nutshell, this is what the FSB evaluations mentioned above is about.
The macroprudential regulation of residential real estate markets in Germany is a good example for how the macroprudential policy cycle can be put into practice.12 Currently, macroprudential instruments for the real estate market in Germany are not activated. Before activation of an instrument, authorities are required to perform an in-depth ex-ante evaluation.