Moreover, liquidity shocks are the most robust explanatory factor of residential property price developments during boom episodes. Interestingly, the information value in broad money is particularly high in episodes of asset price booms, whereas over the entire sample liquidity shocks turn out to be significantly less important. 3.
Monetary policy and financial stability  Given the imperfect status of the economic literature, despite notable recent advances, what should monetary policy do with respect to financial stability? Experience suggests a few general considerations that central bankers should take into account in the conduct of monetary policy. I will mention four.