There is the question, of course, of the levels which this integrated management approach ought to address. Can different metrics be broken down to individual business activities? Or does it make more sense to look at the bank as a whole or at portfolio level in order to identify risk drivers and render management measures more transparent?
A popular shortcut is to include lagged inflation terms in the Phillips curve equation; besides being a convenient means of capturing the inertial component in inflation, the estimated coefficients on lagged inflation almost certainly reflect to some degree the formation of inflation expectations and their influence on the inflation process.