Using monetary policy to reduce variability in asset prices is not likely to be effective. He says that "sharp asset price variability, per se, is not the most serious problem. It is the combination of (and the interaction between) high debt - or leverage - and variability in asset prices that is problematic.. I believe that an important way to help preserve financial stability is to have policy instruments directed at debt gearing (or leverage) and to be used in the light of what has happened to asset values. The aim would be to avoid a situation where gearing has gone up a lot alongside asset values so that subsequent falls in those values threaten the solvency of institutions and of individuals."