In addition, the improved analytical capacity offered by new technology, better coordination among domestic and international bank supervisors, a healthy track record for U.S. banks, and the growth of consolidated home-country supervision across the world helped U.S. banks and their affiliates to further expand their commercial activities. The response of Congress was essentially threefold.
To do so, we simply have to calculate the q - q* term. Three steps are required here. First, we need an estimate of q, trend productivity growth. Second, we need to specify the period over which the moving average of q, q*, is to be calculated.