In broad terms the “s” curve suggests four phases of a technology life cycle – emerging, growing, maturing and aging. 4  BIS central bankers’ speeches  25. Taken together these concepts provide a foundation for formalizing the approach to managing technology. Technology Management involves optimization – “if things can happen with a needle, there is no need to use a sword”.
A fire-sale in one class of assets can also cause stress to be transmitted across the system, with liquidity drying up in other asset classes amid a general rise in uncertainty. These risks are more than just theoretical possibilities. We saw these dynamics play out in a number of countries during the financial crisis in 2008.