Let us have a closer look at how macroprudential policy works in Europe. A core concept of macroprudential policy is the financial cycle, that steady succession of ups and downs, of booms and busts. And each time the cycle turns, each time boom goes bust, everyone runs for the exit.
The US economy In the face of the large downturn in housing construction and a fall in house prices, the US economy has in fact done remarkably well so far to keep growing. Reasonable growth in consumption, strong capital spending by businesses and a turnaround in the trade accounts have been key factors. The decline in the US dollar is presumably assisting the latter.