An ECB review published in the May 2026 Financial Stability Review used a systematic meta‑regression of more than 2,000 estimates to evaluate macroprudential tools during housing‑market booms. The study found that tightening measures cut real household‑credit growth more clearly than they dampen house‑price growth, and that borrower‑based limits (such as debt‑to‑income rules) are especially effective on credit. Joint‑estimation results, corrected for publication bias, show that relative effectiveness varies when instruments are used together, supporting the use of Mundell’s Principle of Effective Market Classification to assign tools to objectives. The analysis confirms earlier meta‑analyses, expands the evidence base with a new G‑search algorithm, and highlights that a wide menu of instruments can tame housing‑market booms if matched to the right objectives.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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