Second, the pass-through to consumer prices has been relatively constrained to date, and ironically this impedes the adjustment process as the required relative price changes have not taken place. While this muted pass-through does help to ensure that the depreciation is real, the competitive advantage of manufacturers has been eroded by sharp increases in a number of key inputs in recent years, particularly electricity.
Ultimately, the committee concluded that the Federal Reserve should remain a provider of both check-collection and ACH services and should play a more active role in helping the banking industry become more efficient.