Doc has a great post on the challenges faced by monetary authorities when one region of an economy is booming and another is declining (because the other is booming). The whole thing is worth a careful read. Here's a snippet:
Consider a simple quantity-theory-of-money model with modest growth in the money supply and no change in the income velocity of money. In this economy, with moderate economic growth, there will be little-to-no inflation.
Now shock this economy with a massive increase in demand in one sector and one geographic region (say, a big increase in the demand for oil in Alberta). In that part of the economy, wages will go up because labour mobility is costly and the adjustments are not instantaneous. Also, in that part of the economy, prices of fixed inputs will sky-rocket (e.g. housing and land).
If those prices go up by considerably more than the rate of growth in the money supply minus the rate of growth in real output (still assuming velocity is constant), then prices somewhere else have to fall. Where?
The primary candidate is housing and land elsewhere in the economy, but that's a difficult political move and could trigger bankruptcies in those areas, especially if consumers have used home equity to support their consumption;