Euro zone: Macroprudential policies will have to be used actively
We believe that macroprudential policies (balance sheet ratios, loan-to-value ratios, taxation of capital gains) will have to be used far more actively in the euro zone. This is because: First, the heterogeneity of euro-zone countries (for credit growth, the rise in real estate prices) is significant; Second, while the continued expansionary monetary policy maintains the countries’ solvency, it will continue to drive up asset prices .