Subsequently, however, the growth in domestic private demand moderated due to weaker corporate profits and a decline in the real purchasing power of households against the background of the upsurge in energy and materials prices. Given that the sharp rises in energy and materials prices continue to date, it is judged that economic growth is slowing further.
At the same time, my sense is that the balance is clearly tilted toward the conclusion that macroprudential policies—through-the-cycle resilience, stress tests, and the countercyclical capital buffer (CCyB)—may be better targeted to promoting financial stability than monetary policy.1 Before I wade into the lessons from past research and experience, I would like to highlight that this question is not just academic.