6 See Framework for Conducting Monetary Policy at Low Interest Rates (Ottawa: Bank of  Canada, December 2015) and S. S. Poloz, “Prudent Preparation: The Evolution of Unconventional Monetary Policies” (remarks to the Empire Club of Canada, Toronto, Ontario, December 8, 2015). -4bust financial cycles.7 It is a difficult problem, since monetary policy is ill-suited to dealing with this.
One should be cautious in predicting the size of the impact of such measures when house prices are increasing rapidly, but we believe that macro-prudential instruments could have played a useful role in building up capital buffers and reducing credit demand and asset price pressures in the housing price boom of 2003–2007.