Taking account of all of these considerations brings me to the final lesson that our experience has taught us – the importance of robust policy frameworks, underpinned by strong governance institutions.
All these definitions and others have been in play in the economics profession's analysis of the link between monetary conditions and asset prices. What is meant by "excessive" is even less well defined. Some commentators have taken a circular approach: If monetary conditions were comparatively easy when asset prices experienced a significant swing, then liquidity must have been "excessive."