When there is inflation or economic overheating in a country, the government often adopts tight monetary policies such as tightening monetary policy, raising interest rates, raising the discount rate and so on  However, in 1990, in order to suppress the excessively high stock market and real estate bubbles, the Japanese government continued to increase the discount rate, which finally led to deflation, which led to the stagnation of the Japanese economy for more than a decade
Tight monetary policy is likely to lead to an economic downturn
 From 1995 to 1996, in order to curb the asset price bubble, the Central Bank of Thailand continuously tightened monetary policy, continued to raise interest rates, curbed investment and consumption, and led to the Great Recession