“3D” alludes to the fact that, contrary to previous models, it captures the distinct benefits of capital requirements through reductions in default risk in the economy, not only for banks but also for borrowers, i.e. non-financial firms and households.22  Concluding remarks To conclude, building models for policy analysis is associated with trade-offs.
I would suggest also that the longer policy remains as it is, the greater the likelihood these pressures will build and ultimately undermine world growth. In the United States, for example, with very low interest rates, we are beginning to see some assets accelerating in price. Agricultural land prices, for example, are increasing at double-digit rates.